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Germany’s seasonally adjusted unemployment rate held steady at 6.3% in May, the highest since September 2020 and matching forecasts. However, the number of unemployed rose by 34,000 to 2.963 million, much more than the 10,000 increase expected, bringing the total close to the 3 million mark for the first time in a decade. This sharp rise adds pressure on Chancellor Friedrich Merz, who is trying to revive Europe’s largest economy after two years of decline. The labor market is weakening despite long-term worker shortages, and officials expect jobless numbers to keep rising through summer. The number of job vacancies fell to 634,000, down 67,000 from a year earlier, signaling slower hiring demand.