Germany's unemployment level is expected to fall in the two next years as the long-awaited recovery of Europe's biggest economy gathers pace, a source told Reuters on Monday, citing government forecasts. The forecasts, first published by Reuters on Saturday, will be presented by the economy minister on Wednesday. According to the new government projections, unemployment will edge down from 6.3% this year to 6.2% in 2026, before easing to 6.0% in 2027.

The number of people out of work in Germany rose more than expected in September, labour office figures showed on Tuesday, as the job market struggles to recover in a continually weak economy, Reuters reported. In seasonally adjusted terms, the jobless figure rose by 14,000 to 2.98 million. The non-adjusted number of unemployed people in Germany last month passed the 3 million mark for the first time in a decade but fell by about 70,000 to 2.95 million again in September.

Germany's top appeals court quashed on Tuesday a lower court's decision to back a settlement by Volkswagen over directors' and officers' liability insurance coverage in the so-called dieselgate case, Reuters reported.

Germany expects the United States to apply a 15% tariff rate to pharmaceuticals and heavy trucks, a government spokesperson said during a regular press conference on Monday, Reuters reported. U.S. President Donald Trump unveiled sweeping new import tariffs last week, including 100% duties on patented drugs and 25% levies on heavy-duty trucks, triggering fresh trade uncertainty.

Bosch will cut around 13,000 extra jobs at its auto-parts business by 2030, representing about 3% of its global workforce. The cuts, which come on top of thousands of job losses at Bosch in recent years, will mainly affect positions in Germany. The company’s base in the Stuttgart region is set to be the hardest hit, while sites in areas such as Feuerbach and Schwieberdingen will see thousands of job cuts. The engineering giant is seeking to claw back €2.5 billion in losses “as quickly as possible” as Europe’s car industry remains in the doldrums.

German automotive supplier Kiekert has applied for insolvency, according to a court document seen by Reuters on Tuesday. Two core businesses - Kiekert AG and Kiekert Holding GmbH - have initiated insolvency proceedings and Joachim Exner has been appointed as administrator on an interim basis, the document showed. Kiekert, which specialises in locking systems, has 4,500 employees in 11 locations, according to its website.

Confidence among German businesses fell back for the first time this year, according to a survey that adds to worrying signs for Europe’s most important economy, the Wall Street Journal reported. The Ifo Institute said on Wednesday that its business-climate index declined to 87.7 in September from 88.9 last month. That decrease breaks a streak of gradually improving sentiment among German companies unbroken since the start of 2025, and overturns economists’ expectations for a further uptick in the index.

More German companies in Japan see the country as a manufacturing hub for Asia — and not just as a sales market — with stability, affordability and proximity to major markets cited as top draws, according to a survey by the German Chamber of Commerce and Industry in Japan (AHK Japan), the Japan Times reported. Regulatory robustness and relative affordability of operation, due to the weakness of the yen against the euro, contribute to Japan being an attractive choice for manufacturers.