Robust job market
January 3, 2012
According to official statistics, Germany's unemployment rate hit a record low in 2011. Last year, only little under three million people were out of a job on average – a tally last recorded in 1991, a year after German unification.
The head of the Federal Labor Office, Frank-Jürgen Weise, spoke of a gratifyingly strong labor market, which had been flexible enough to weather the eurozone's debt crisis.
"We can look back at a good year," Weise said. "Demand for labor was very high right through 2011."
Crisis, what crisis?
Statistics revealed that 41.04 million people were employed or in self-employment last year. A figure that high had not been reached in Germany in the past two decades. The economy scored a three-percent growth in 2011, thanks both to exports and domestic consumer spending.
Andreas Rees, a senior economist with Unicredit, told the Reuters news agency that the latest employment statistics were "a continuation of the German success story on the labor market". "German companies continue to have full order books, and that's also good news for the private consumption sector," Rees said.
The situation on the job market was dealt a small blow in December when unemployment rose by 0.2 percent, or 67,000 people. The slight rise was due to less work being available in catering, farming and construction during the winter. However, the December tally was 231,000 lower than in the corresponding month in 2010.
Uncertain outlook
German analysts remain divided over the job market prospects for 2012. Some predict a slight dip in available jobs particularly in the first half of the year. Others are more optimistic and believe that the government's forecast of a meager 0.5-percent growth this year is far too cautious.
Weise pointed to the risks caused by the ongoing debt crisis in the eurozone. He added, though, that the demand for highly-skilled labor would continue to be on the rise, particularly in the automobile and medical sectors.
The rosy picture on the labor market in 2011 meant that German taxpayers had to spend some five billion euros ($6.5 billion) fewer in unemployment benefits.
Author: Hardy Graupner (dpa, Reuters)
Editor: Nicole Goebel