Details
Mini Case Code : CLIBE059
Publication date : 2005
Subject : International Business Environment
Length : 04 Pages
Price : Rs. 100
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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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* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
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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.
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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.
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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
percent of the population in East Germany were unemployed. The report said
almost every fourth person in East Germany was without a job and there were high
levels of underemployment ....
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?