German unemployment rate rises to decade high

By Maria Martinez

BERLIN (Reuters) -The number of people out of work in Germany rose less than expected in April but the unemployment rate rose to its highest level since the pandemic, as economic malaise put pressure on the job market even against a backdrop of long-term labour shortages.

The office said the number of unemployed increased by 4,000 in seasonally adjusted terms to 2.92 million, roughly the same level as in March, labour office figures showed on Wednesday. Analysts polled by Reuters had expected a rise of 15,000.

The seasonally adjusted jobless rate rose to 6.3% from 6.2% in the previous month. Excluding the pandemic, this is the highest level since December 2015.

The data comes as a new conservative-led government prepares to take office next week with the Social Democrats. One of its main challenges will be to pull Europe's biggest economy out of two years of decline.

There were 646,000 job openings in April, 55,000 fewer than a year ago, showing a slowdown in labour demand, the federal labour office said.

The economy is still battling with persistent weakness and structural headwinds.

The tariffs announced by U.S. President Donald Trump will deal a major blow - possibly putting it on track for a third year of recession for the first time in post-war German history.

The number of unemployed people in Germany is approaching the 3 million mark for the first time over the last 10 years.

(Editing by Madeline Chambers)

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