Germany’s unemployment rate slightly increased at the end of the year, despite the economic recession, according to official data released on Wednesday. The Federal Labor Agency reported a rise of only 5,000 unemployed individuals in December, compared to 21,000 in November and 29,000 in October. This was less than the predicted monthly rise of 20,000 for December. The unemployment rate went up to 5.9 percent in December, from a revised 5.8 percent in November.

Andrea Nahles, Chief of Federal Employment Agency, stated that the labor market is resilient despite challenges. In 2023, registered unemployment increased by 191,000 from the previous year to reach 2.61 million. Job vacancies went down by 84,000 annually to 761,000.

According to results from the labor force survey released by Destatis, the unemployment rate stayed the same at an adjusted 3.1 percent in November. The number of unemployed individuals increased by 5,000 from the previous month, reaching 1.36 million in November.

Destatis commented that there is a continuous upward trend in the labor market, although its momentum compared to the previous year has decreased. Employment has increased by 0.4 percent from the previous year. Germany’s economy shrunk by 0.1 percent in the third quarter, with household consumption acting as a key factor. The European Commission predicts that Germany will experience a 0.3 percent contraction in 2023 before experiencing growth of 0.8 percent in 2024 and 1.2 percent in 2025.