Changed structures on the German labour market : fit for the future or not sustainable after all?

Abstract

"The German labour market is currently improving. However the most recent positive trend is neither due to particularly strong economic growth, nor to changed policies in the definition of unemployment, nor to demographic change. What is decisive for the improvement of the labour market is the increase in employment, especially of employment subject to social security contributions. The current signs show that this positive trend in employment cannot be explained in a monocausal way. Rather there are several factors the interaction of which has benefitted the labour market. One could cite the labour market reforms that have increased the absorption capacities of the labour market; the willingness on the part of applicants to make concessions; and the job search activities of those out of work. Added to this is an employment-friendly wage policy which stimulates the demand for workers and which has curbed the pressure of costs during the economic upturn. And finally, in the context of the economic and financial crisis, a previously unknown level of in-house hoarding of labour prevented a further rise in hard-core unemployment. It would seem that the tendency towards improvement in the German labour market is being accompanied by a mix of more external flexibility (via the labour market reforms) and more internal numerical flexibility (in the course of the crisis management)." (Author's abstract, IAB-Doku) ((en))

Cite article

Walwei, U. (2011): Veränderte Strukturen des deutschen Arbeitsmarktes: zukunftsfähig oder doch nicht nachhaltig? In: WSI-Mitteilungen, Vol. 64, No. 11, p. 563-570. DOI:10.5771/0342-300X-2011-11-563