German unemployment rate dips to 6.1%, but outlook
Unemployment in Germany dipped slightly in May, official figures showed on Tuesday.
The unemployment rate dropped by 0.1 percentage point to 6.2%, the Federal Employment Agency said, with the number of jobless people falling by 12,000 to 2.919 million. The figure was 197,000 higher than in May 2024.
The Nuremberg-based agency's chairwoman, Andrea Nahles, said the results showed that the usual spring bump in employment has failed to materialize this year, with economists concerned that the country could be facing a third consecutive year of recession.
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"The labour market is not getting the tailwind it needs for a turnaround. We therefore expect unemployment figures to continue to rise in the summer," said Nahles.
Meanwhile, Germany continues to suffer from a major shortage of skilled workers.
Around one in eight professions are experiencing employment bottlenecks, the agency said.
"The shortage of skilled labour remains a key challenge for Germany as a business location," said Nahles.
Nursing and healthcare professions were particularly affected last year, as well as construction and skilled trades. There was also strong demand for lorry drivers and teachers.
A total of 634,000 job vacancies were registered with the Federal Employment Agency in May, around 67,000 fewer than a year ago.