German jobless rate edges up in July

BERLIN

Germany's jobless rate rose unexpectedly in July to 6.4 percent "mainly owing to seasonal factors" against a backdrop of weak labour market momentum, the federal employment agency BfA said on July 31.

Analysts polled by Factset had forecast a figure of 6.3 percent, as per the previous two monthly readings.

Less representative but widely publicly discussed raw data showed the number of jobless rising 71,000 across July to surpass the three million mark for the first time since May.

Seasonally adjusted figures showed the number as up by 6,000.

"Unemployment and underemployment rose significantly in July, mainly for seasonal reasons," said agency executive board member Daniel Terzenbach.

He added the holiday period and the end of vocational training programmes for young people were also partially to blame for the rise, while adding that tepid labour market demand was not helping jobless find work.

Compared with July last year 28,000 more people are currently without employment, the BfA said.

"Without reforms, the turnaround in the labour market will not happen," said the German Engineering Federation VDMA, urging "work be made more attractive and the burden on businesses be eased".

In the second quarter of 2026, German GDP proved more resilient than forecast, rising 0.2 per cent despite the war in the Middle East and the closure of the Strait of Hormuz, which spawned an energy crisis in the eurozone.