Germany’s jobless rolls swelled to 3.025 million in August, the first time in a decade they have crossed the three-million threshold, the Federal Employment Agency said on Friday. The unadjusted unemployment rate rose to 6.4% from 6.3% in July after 46,000 more people lost work during the summer lull. Factoring out seasonal effects, unemployment dipped by 9,000 to 2.96 million and the seasonally adjusted rate held steady at 6.3%, matching economists’ forecasts. Even so, the total number of people out of work is 153,000 higher than a year ago, underscoring the fragility of Europe’s largest labour market. Agency chief Andrea Nahles said the market "is still marked by the economic downturn of recent years," but noted "early, fragile signs" of stabilisation. Labour demand remains soft: employers reported 631,000 vacancies in August, 68,000 fewer than a year earlier, and the Ifo Employment Barometer slipped to 93.8 points. Two straight years of economic contraction, high energy costs and slowing global demand have sapped corporate hiring, and business leaders warn that fresh U.S. tariffs could push Germany into an unprecedented third year without growth. The data intensify pressure on Chancellor Friedrich Merz’s coalition, which is preparing an autumn package of reforms and infrastructure spending aimed at reviving output and protecting jobs.