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24 December 2009
Instead of the forecast 4.5 to 5 million unemployed people in Germany expected for 2010 earlier this year, the Institute for Economics (ifo) has reduced their predictions to 3.6 million.
Professor Hans-Werner Sinn, the head of ifo, told BILD "we are experiencing a small miracle in the German labour market at the moment. Whilst most other countries are in a mood of catastrophe, our labour market is coping with the crisis."
"[If our predictions are correct] we will therefore have 1.3 million less unemployed than we had in 2005. And all this in the middle of the worst world economic crisis since World War II."
Sinn explains the 'miracle' with the massive financial support for workers by the government in terms of reduced working hour payments and social security support.