Germany’s seasonally adjusted unemployment rate fell to 6.3% in May 2026, down from April’s near six-year high of 6.4%, slightly beating market expectations. However, the Federal Employment Agency attributed the decline to a one-off effect. The number of unemployed persons decreased by 12,000 to 2.987 million, defying forecasts of a 10,000 rise. On a non-adjusted basis, unemployment dropped below 3 million to 2.95 million, largely due to a rebound following weak April data. Andrea Nahles, head of the agency, noted that “despite the decline, the spring upturn has failed to gain real momentum this year.” Unemployment is expected to rise in the coming months as companies delay staffing adjustments in response to geopolitical shocks, including the Iran conflict.

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