It seems so. The economic downturn in Germany and the onset of winter are having a negative impact on the labour market. The German outbound tourism market is showing a remarkable recovery in 2025 in Gran Canaria, driven by the boom in package holidays and the increase in advance bookings, according to the German Travel Association (DRV). Travellers value the protection and advice offered by travel agencies, while early booking discounts and the flexibility of package deals reinforce this trend.
The non-seasonally adjusted unemployment rate also rose by 0,1% in December to 6%. The Federal Employment Agency said: "In December, the winter break on the labour market begins. As usual, unemployment and underemployment increased in December." The Federal Employment Agency noted that the economic crisis that continued into 2023 left deeper scars on the labour market. Due to the stagnant economic outlook in Germany, the number of unemployed is expected to continue to rise this year and exceed the 3 million mark for the first time in 10 years in the coming months. Meanwhile, despite the economic crisis, total employment in Germany rose to 46,1 million last year, the highest figure since the unification of East and West Germany in 1990.
The seasonally adjusted number of unemployed in the country also increased by 10.000 people in December compared to November and reached 2,87 million. The market expectation for the number of unemployed was that it would increase by 15.000 in October. On the other hand, the country's economy contracted by 0,3% in 2023 compared to the previous year due to unusually high levels of inflation affecting purchasing power, high energy prices, falling investments, weak external demand and high interest rates.