The unemployment rate in Germany reached 5.7% in December 2023, up 0.3% when compared to the same period a year ago, according to the latest labour market report by the Federal Employment Agency.

Further seasonally adjusted data showed that the unemployment rate ticked up by 0.1% when compared to November 2023.

On a seasonally adjusted basis, the number of unemployed increased by 5,000 compared to the previous month. Compared to December of last year, the number of unemployed is 183,000 higher.

Underemployment, which includes unemployment as well as labour market policy and short-term incapacity for work, rose by 11,000 in seasonally adjusted terms compared to the previous month. In December 2023 it stood at 3,484,000 people. That was 171,000 more than a year ago.

Without taking Ukrainian refugees into account, underemployment would have been only 126,000 higher than the previous year, the agency said.

Meanwhile, data from the Federal Statistical Office showed that the number of employed people rose slightly by 22,000 in November 2023, seasonally adjusted, compared to the previous month. At 46.22 million people, it was 213,000 higher than the previous year.

In December, 713,000 jobs were registered with the Federal Employment Agency, 68,000 fewer than a year ago. 

Before short-time work begins, companies must report the expected loss of work. According to current data, 60,000 people were reported to be on short-time work from 1 December to 27 December, slightly more than at the same time in the previous month.

Short time work refers to a temporary reduction in normal working hours under a government programme.

CEO of the Federal Employment Agency (BA), Andrea Nahles said, “With the start of the winter break, unemployment and underemployment increased in December, as is usual for this month. Employment continues to grow and companies' demand for new staff did not weaken any further in December. However, short-time work has been used somewhat more recently.”