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Germany's unemployment increased less than expected at the end of the year despite the economy undergoing a recession, official data revealed on Wednesday.
Unemployment rose only 5,000 in December compared to an increase of 21,000 in November and 29,000 in October, the Federal Labor Agency reported.
Economists had forecast a monthly rise of 20,000 for December.
The jobless rate edged up to 5.9 percent in December from a revised 5.8 percent in the previous month. The rate was forecast to remain unchanged at November's initially estimated figure of 5.9 percent.
Federal Employment Agency Chief Andrea Nahles said the labor market is holding up well despite challenges.
In the whole year of 2023, the registered unemployment surged 191,000 from a year ago to 2.61 million. At the same time, vacancies decreased by 84,000 annually to 761,000.
According to the labor force survey results, published by Destatis earlier today, the jobless rate remained unchanged at adjusted 3.1 percent in November.
The number of people out of work increased 5,000 from the previous month to 1.36 million in November.
Destatis said the long-term upward trend on the labor market continued with a fall in momentum compared to the last year. Employment increased 0.4 percent from the previous year.
The largest euro area economy had contracted 0.1 percent in the third quarter with the household consumption that used to be the pillar of growth, acting as a drag.
The European Commission had projected Germany to shrink 0.3 percent in 2023, before rebounding 0.8 percent in 2024 and 1.2 percent in 2025.
