Germany's jobless rate likely to climb in 2025 as economy struggles

Germany’s unemployment rate is expected to rise this year due to weak economic growth, according to a forecast by the Institute for Employment Research (IAB) published on Friday, reported dpa.

The number of unemployed people is projected to increase by 140,000 to an average of 2.9 million in 2025, while employment is expected to fall by 40,000 to around 46 million.

A rebound in economic activity could improve labour market conditions later in the year, the IAB said.

Economist Enzo Weber added that a significant recovery was unlikely without government intervention, but planned fiscal stimulus packages could help boost the economy towards the end of the year.