Friday, August 24, 2007

Unemployment statistics in Germany


There has been much discussed about the unemployment situation in Germany. Although the national unemployment level is around 11.5%, in each region the unemployment level vary dramatically. If you collectively look at the former Eastern German states, then you have an unemployment level around 15%, whereas the former Western German states average around 7,5%. If we get a bit more granular, it becomes more extreme. In the map above, the darkest areas represent regions that have unemployment between 20.8% and 25.1%. The lightest areas have unemployment under 7.7%. The furthest eastern part of Mecklenburg-Vorpommern has an unemployment rate of 25%, which is a stark contrast to Munich, with an unemployment rate of around 4.2%.

The clear separations that one sees on the map go to indicate that the issues behind higher unemployment in certain regions of Germany are issues that have developed over a very long period. This issue leads to frequent debates and discussions about how to improve the situation. As such, I haven't seen any activity which has improved the situation and all ideas are still theoretical.

This is a very complicated issue as not only is there a huge deficit of job openings in East Germany, but employers are often heard complaining about the "quality" of employees. The debate often centers around attitudes of employees in East Germany that had been used to a lifetime guaranteed job before the reunification. After the reunification, the social state was dramatically changed and in modern business, employees are asked to take initiative and to be much more ambitious. After so many years living in a different culture, this is very hard to change.

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