Germany leads the way in job growth
In August, 1.9 million German adults - defined as people at least 25 years old - were counted as unemployed, meaning they were looking for work but had not found it. That figure is the lowest number since 1991, not long after the country was unified.
In the rest of the euro zone, there were 13.9 million unemployed adults. That is the highest number since the euro was created in 1999.
Eurostat, the European Union's statistical agency, reported this week that the overall number of unemployed workers in the euro zone countries declined in August for the third consecutive month. That decline was caused by a reduction in the high level of joblessness among those under 25. But unemployment among older workers continued to increase.
While the rates of unemployment among younger workers have skyrocketed, the increase in the number of young unemployed workers since the downturn began has been much less than the increase among older workers - those most likely to have the responsibility to support a family.
Among the countries in the EU, whether or not members of the euro zone, all but Germany now have more adult unemployed workers than at the end of 2007, when the US set off the credit crisis that brought on the Great Recession.
The only EU countries where the current level of unemployment is less than one-third higher than the 2007 level are Austria, Belgium, Finland, Hungary, Malta and Romania. In Germany, the number is down 35 per cent.
Last month, Eurostat reported that the gross domestic product of the euro zone, excluding Germany, rose at an annual rate of 0.5 per cent in the second quarter. That was the first such increase since the second quarter of 2011, and helped to increase investor confidence. But the jobless figures show, at least so far, there is little sign of recovery in the job market.
In the US, the number of unemployed adults peaked in 2009 and has since declined, although it remains 57 per cent higher than at the end of 2007. In Britain, the peak of unemployment came in 2011 and the decline has been slower.
Germany's extraordinary job performance can be traced to several factors. Government programs encouraged companies to cut hours rather than fire people during the crisis, preventing a surge in unemployment.
Germany has since benefited from the euro-zone crisis. Poor economic performance in much of the continent has held down the value of the common currency, and thus helped German exports.
Frequently Asked Questions about this Article…
Germany had about 1.9 million unemployed adults (aged 25 and over) in August — the lowest level since 1991 — while the rest of the euro zone had roughly 13.9 million unemployed adults, the highest total since the euro was introduced in 1999.
Eurostat reported the overall number of unemployed workers declined in August for the third consecutive month mainly because joblessness among those under 25 fell. However, unemployment among older workers continued to rise.
Although youth unemployment rates have surged, the increase in the number of young unemployed since the downturn began has been much smaller than the rise in unemployed older workers — the group more likely to be supporting families.
Among EU countries (euro zone members or not), only Austria, Belgium, Finland, Hungary, Malta and Romania have current adult unemployment less than one‑third higher than at the end of 2007. Germany’s number of unemployed adults is actually down about 35% compared with 2007.
Eurostat reported that euro zone GDP excluding Germany rose at an annual rate of 0.5% in the second quarter — the first such increase since Q2 2011. That uptick helped boost investor confidence, though jobless figures still show little sign of broad labour‑market recovery.
In the US, the number of unemployed adults peaked in 2009 and has since fallen but remains about 57% higher than at the end of 2007. In Britain, unemployment peaked in 2011 and the subsequent decline has been slower.
Germany’s strong job performance is linked to government programs that encouraged companies to cut workers’ hours rather than lay people off during the crisis, and to a weaker common currency that made German exports more competitive amid poor performance elsewhere in the continent.
The contrasting labour‑market trends — Germany’s improving jobs picture versus weaker conditions elsewhere in the euro zone — have supported investor confidence and highlight why investors often watch employment data and GDP readings (including euro zone GDP excluding Germany) as indicators of economic momentum and export strength.
Call 1300 880 160
Start a chat
Schedule a call
