Germany’s labor market showed only tentative stabilization in August as the seasonally adjusted unemployment rate held at 6.4%, matching expectations and remaining at its highest level since 2020. Seasonally adjusted unemployment rose by a smaller-than-expected 4,000 to 2.996 million, just below the politically sensitive 3 million threshold, while the unadjusted total climbed 36,260 to 3.061 million and stayed above 3 million for a second month. Labour office head Andrea Nahles said the market showed little momentum beyond normal seasonal patterns, as the summer break and a sluggish economy weighed on conditions. Separately, the Ifo employment barometer rose 1.8 points to 94.8, its highest since May 2025, signaling slower job cuts though the index stayed below 100, meaning planned reductions still outweighed hiring. Manufacturing posted its strongest Ifo employment reading since March 2024, vacancies rose to 656,000, and recent signs of firmer growth could offer some support in the months ahead.