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.
New York Times
Frequently Asked Questions about this Article…
In August, Germany had about 1.9 million unemployed adults (age 25+), the lowest level since 1991. By contrast, the rest of the euro zone had roughly 13.9 million unemployed adults — the highest total since the euro began in 1999. Eurostat reported the overall euro‑zone unemployment declined for the third month in a row, but that improvement masks large differences between Germany and other countries.
Germany's strong job performance is linked to targeted government programs that encouraged companies to cut working hours rather than lay off staff during the crisis, which prevented a sharp rise in unemployment. Germany has also benefited from a weaker common currency that boosted exports, supporting jobs.
Eurostat found the recent decline in unemployed workers was driven mainly by fewer under‑25s looking for work. However, although unemployment rates among younger workers have risen sharply, the increase in the number of young unemployed since the downturn began is smaller than the rise among older workers — who are more likely to support families.
Yes. The only EU countries where current unemployment is less than one‑third higher than the end‑of‑2007 level are Austria, Belgium, Finland, Hungary, Malta and Romania. Germany stands out differently: its 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 improvement helped lift investor confidence, but the jobless figures suggest the labour market is not yet broadly recovering.
In the US, unemployed adults peaked in 2009 and have since declined, though the total remains about 57% higher than at the end of 2007. In Britain the peak came in 2011 and the subsequent decline has been slower. These patterns differ from Germany’s sustained job improvement and the rest of the euro zone’s mixed results.
Divergent trends — with Germany showing strong job numbers while many other euro‑zone countries have rising unemployment — mean investors should be aware of uneven economic recovery across Europe. The German labour market and export strength have supported investor confidence, but broader euro‑zone job markets still show limited signs of recovery.
So far there is little sign of a broad recovery. While total unemployment in August fell for the third consecutive month mainly due to improvements among under‑25s, unemployment among older workers continued to increase and many euro‑zone countries have more adult unemployed than at the end of 2007.
Call 1300 880 160
Start a chat
Schedule a call
