Unemployment in Germany *

Abstract:

This caselet gives an overview of the unemployment scenario in Germany, which has touched a high in recent years. It explains the type of unemployment prevailing in Germany and the cause for the increase in unemployment.

Issues: » Unemployment in Germany » Type of unemployment prevalent in Germany » Causes of unemployment in Germany. » Is unification of Germany the cause of unemployment? » Reforms to transform Germany into a free-market economy. Introduction In February 2005, the total number of unemployed in Germany was more than 5.2 million. Unemployment was at its height during the time. According to the reports of the Federal Agency of Labor (BA), 5, 216, 343 working age population registered as unemployed for the month of February 2005, which corresponds to a national ratio of staggering 12.6 percent. When observed region wise, on an average, 10.4 percent in West Germany and 20.7 per....

Questions for Discussion:

1. Germany has been facing the problem of unemployment since the 1970s. List out the reasons for the problem of persistent unemployment in Germany.
2. Germany undertook Agenda 2010 to bring structural changes in the economy. What reforms had it adopted under the Agenda 2010 and what was the reaction of the public toward the reforms in Germany?

Key words:
unemployment, Federal Agency of Labor (BA), East Germany, West Germany, underemployment, mini- jobbers, consumption, long-term unemployment, structural unemployment, Organization for Economic Co-operation and Development (OECD), Hartz concept.

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