In December, Germany observed a slight increase in the number of unemployed individuals, but the rise was considerably lower than analysts' predictions, according to labor office data

released on Wednesday, marking one of the lowest rates since German reunification.

The Federal Employment Agency reported a seasonal adjustment showing a 5,000 increase in the count of people without work, reaching 2.703 million. Analysts surveyed by Reuters had anticipated a larger rise of 20,000.

Andrea Nahles, the agency's chairwoman, remarked, "The labor market continues to withstand the prevailing pressures and uncertainties." Despite the slight uptick, the seasonally adjusted jobless rate in December ticked up to 5.9%.

Reflecting on 2023, Nahles acknowledged the labor market's resilience amid a challenging economic landscape, noting it registered one of the lowest unemployment rates since reunification.

Throughout 2023, Germany observed a rise in the count of unemployed individuals by 191,000, reaching 2.6 million compared to the previous year.

There was a noticeable decline in labor demand in the latter half of 2022, a trend that persisted into 2023. However, the agency emphasized that despite this decrease, the demand for labor remained high in a broader historical context.

In 2023, an average of 761,000 job openings were reported, showing a decrease of 84,000 compared to the preceding year, as per the agency's data.