The various different effects of the economic upturn and the economic crisis on regional labour markets in Germany

Abstract

"The recent economic crisis has had a strong impact on the prospering regions in southern Germany dominated by the manufacturing industry. During the crisis, the unemployment rates in these regions have strongly increased and the instrument of short-time work has been used above average, as data from 2008 to 2009 show. In contrast, the eastern German regions in particular have been less affected by the crisis: there the unemployment rates continued to decrease after the beginning of the crisis and the use of short-time work has been less widespread. After the economic upturn between 2005 and 2008 there were still great differences in regional unemployment rates, although all regions in Germany benefited from the positive economic development. This raises the question of whether the recent economic crisis will lead to regional convergence or whether divergence among regions will increase because the crisis has hit some economically weak regions as well. This paper tries to answer this question by analysing the regional development of employment, unemployment and short-time work during the last economic upturn and the recent crisis." (Author's abstract, IAB-Doku) ((en))

Cite article

Schwengler, B. & Loibl, V. (2010): Beschäftigung, Arbeitslosigkeit und Kurzarbeit: Aufschwung und Krise wirken regional unterschiedlich. (IAB-Kurzbericht 01/2010), Nürnberg, 8 p.