Jobless rate have tumbled in Germany, it comes to 6% in October. In fact, there are countless only 2.6 million of unemployed in the country. So, last month, job-seeker number diminished by 68,000 people.
Not only this decrease is due to the rise in export in automobile area (+9%) in 2016, it is also thanks to the growth of household consumption (+2.7). Furthermore, in severals areas, youth unemployment have disappeared such as Bavaria or Bad-Wurtemberg. As a result, the standard of living has improved in Germany.
According to OECD, this is a historical record since the reunification in 1989. Actually, in 2006, there were 11% unemployed. It was one of the worst jobless rates in European Union. While, at that time, France counted 8.7% of unemployed.
We can explain this success with “Hartz law” which created little jobs where people are poorly paid. Moreover, the government has reduced unemployment benefits. So, Germany had to adapt to the new circumstances.
Nevertheless, precarity and poverty are still significant. Indeed, there are 20% underpaid and pensioners are obliged to work again because their old-age pension is weak.
In a nutshell, the unemployment in Germany hides an important precarity inside employment.
Haboudou Masisilya, IEJ 3E