Daily NewsView All News
According to a new report by the Institute for Labour Market Research (IAB), unemployment in Germany is forecast to average 3.5 million in 2010. This would be an increase of 120,000 over 2009. Gross Domestic Product (GDP) is estimated to grow by 1.75% during 2010.
The worst case scenario last year was an expected unemployment level of 5 million for 2010. However, this year the researchers are far less pessimistic. Dr. Sabine Klinger, Head of Department at IAB said, "the German labour market has fared remarkably well during the economic crisis. Reduced working hour schemes and other flexible working practices have saved an estimated 1 million jobs."
Dr. Klinger went on to say, "from our current perspective it is very, very unlikely that we will reach the four million unemployment threshold [as previously feared]. We forecast less than two percent GDP growth and people should not expect that this will generate lots of new employment in the in the short term. It is more likely that companies will come off reduced working hour schemes and go back to full-time employment."
"The labour market is currently not able to absorb many new entrants. Job seekers will therefore have to make enormous efforts to try and find work."