The office said the number of unemployed increased by 10,000 in seasonally adjusted terms to 2.87 million.

Analysts polled by Reuters had expected that figure to rise by 15,000.

“The winter break on the labour market begins in December.

“As a result, unemployment and underemployment increased in December, as is usual for this month,” said labour office head Andrea Nahles.

Due to the subdued economic outlook, the number of unemployed is expected to continue to rise this year, exceeding the 3 million mark for the first time in 10 years at the beginning of 2025.

The average unemployment rate for the year edged higher to 6.0% in 2024 from 5.7% in 2023, according to the office.

“Looking back, the ongoing economic downturn in 2024 has left increasingly deep marks on the labour market,” said Nahles.

The seasonally adjusted job rate remained stable at 6.1%.

There were 654,000 job openings in December, 59,000 fewer than a year ago, showing a slowdown in labour demand, the federal labour office said.