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Germany’s seasonally adjusted unemployment rate held steady at 6.3% in December 2025, capping a year marked by a sluggish and uneven labor market recovery in Europe’s largest economy. Labor Office head Andrea Nahles said the job market continues to lack economic momentum, with weakness persisting into year-end. Employment has largely stagnated and hiring demand remains subdued, underscoring the fragile recovery following two years of economic contraction. Ongoing US tariffs have added further pressure on exports and the industrial sector. The number of unemployed rose modestly by 3,000 to 2.98 million, compared with expectations for a 5,000 increase. On a non-seasonally adjusted basis, unemployment climbed by 22,900 to 2.91 million, staying close to the decade high of just over 3 million reached in August.