Germany's unemployment rate rose at the start of the year, despite a smaller than expected increase in the number of people out of work, as the weakness of Europe's biggest economy takes its toll in the labour market.

The unemployment rate crept higher in January to 6.2%, after layoffs among firms in the manufacturing sector picked up in recent months.

Unemployment rate in Germany increased to 6.2% in January from 6.1% in December 2024.  Unemployment change in Germany increased to 11,000 in January from 10,000 in December 2024.  ETFs: (EWG), (GF), (FGM),

The German government slashed its gross domestic product expectations Wednesday, saying it was now forecasting just 0.3% growth in 2025.

Europe’s economy stagnated late last year as its former growth engine, Germany, finished a second straight year of shrinking output.

The eurozone economy stagnated in the fourth quarter as political instability weighed heavily on the region’s two biggest countries, offsetting better performance elsewhere.