German unemployment hits new high

German unemployment soared to a new post-Second World War high last month, with a record five million people out of work for the first time – pushing the jobless rate to 12.1%.

Economics and Labour Minister Wolfgang Clement described the figure as “dramatically high”.

He had cautioned January figures would be swollen as a result of a new jobless benefit system that requires social welfare recipients who are able to work to register as unemployed.

Those changes could add several hundred thousand to the number of people officially counted as unemployed.

The unadjusted jobless rate was up from 10.8% in December, the Federal Labour Agency said, with a total of 5.037 million people out of work – 573,000 people more than in January last year.

The previous record was set in January 1998, when 4.824 million people were out of work. This January’s jobless rate fell short of the record reached then of 12.6%.