German Unemployment reaches 6 year high: nearly 11%; European Socialism at work

**Gio** · 12-02-2004, 05:14 AM

-

Quote:

Germany's unemployment rate rose in November to the highest since December 1998 as business confidence fell to its lowest in more than a year and companies including BASF AG announced job cuts.

The seasonally adjusted jobless rate in Europe's largest economy rose to 10.8 percent from 10.7 percent in October, the Nuremberg-based Federal Labor Agency said. Economists expected the rate to stay unchanged, according to the median of 36 forecasts in a Bloomberg survey. The number of jobseekers rose 7,000.

Germany's unemployment rate is now higher than when Chancellor Gerhard Schroeder was first elected in September 1998. Companies are cutting jobs and shifting production to cheaper countries such as neighboring Poland and the Czech Republic.

``High labor costs, a lack of flexibility over working hours, a short working week and red tape'' are leading companies to move production abroad, said Martin Wansleben, the executive director of the DIHK industry and trade association, which represents 3.3 million German companies, in an interview. ``Companies aren't creating anything new here, they're only consolidating what they've got.''

Today's report also showed that the seasonally adjusted number of people in work fell 1,000 in September, the first decline this year. Figures for employment are published two months later than those for unemployment.

German unit labor costs, a measure that includes wages and labor productivity, are 16 percent higher than the average of the country's main foreign competitors and exceeded only by Norway, according to a study by the Cologne-based IW economic institute. Those costs contributed to a 2.9 percent decline in investments by German industry last year, after an 11 percent drop in 2002.

The rise in joblessness in Germany contrasts with the U.S., where economists expect 200,000 new jobs were created last month, lowering the jobless rate to 5.4 percent from 5.5 percent, according to the median estimate of 62 economists in a Bloomberg survey. The Labor Department releases the report tomorrow.

BASF, the world's biggest chemical maker, said Nov. 23 it will cut about 3,600 jobs -- about 10 percent of the total -- at its main German site in Ludwigshafen by the end of 2007 to reduce costs. The company is looking to save about 450 million euros ($599 million) by the middle of 2005.

Deutsche Bank AG, Europe's third-biggest bank by assets, plans to cut 1,920 German jobs -- or 7 percent of its German workforce -- to boost profit. Schering AG, the world's biggest maker of birth control pills, started talks in November with workers' representatives on the reduction of 950 jobs in Germany, out of 1,250 cuts planned globally.

Paris-based Alcatel SA, the world's largest provider of broadband Internet equipment, said yesterday it plans to cut 600 jobs in Germany next year. Leifheit AG, a German maker of household products, announced today it will cut 360 jobs in Germany by the end of 2005.

The threat of job losses and relocations has forced labor unions to agree to longer working hours and undermined their wage- bargaining power. Workers at Stuttgart-based Robert Bosch GmbH, the world's second-largest maker of car parts, agreed to longer hours and reductions in wage costs this year while Volkswagen AG's 103,000 German employees accepted a 28-month wage freeze.

Germany as an investment location is being challenged not only by low-wage countries, but also by nations of comparable wealth with lower taxes, said Wolfgang Wiegard, the head of Schroeder's council of economic advisers.

Stagnating wages, the specter of unemployment and higher energy costs will damp German consumer spending next year, delaying a recovery in the domestic economy, the Bundesbank said in its November monthly report.

German growth will slow to 1.4 percent next year from 1.8 percent this year, the panel of economic advisers said Nov. 17. Exports will still account for about 90 percent of that growth, said Wiegard.

The economy may cool more should the euro continue its gains against the U.S. dollar, which makes German goods more expensive in most overseas markets. The dollar, which fell to a record $1.3385 today, may continue its slide after the world's major central banks signaled they will allow the currency to extend its slide, a Bloomberg survey indicates.

``For companies, a euro between $1.10 and $1.20 is pain- free,'' the DIHK's Wansleben said. ``Now we've reached the zone of pain, it's starting to hurt really badly.''

The International Monetary Fund on Nov. 2 pared its 2005 growth estimate for Germany to 1.5 percent, the worst predicted performance for any of the Group of Seven nations.

Ray · 12-02-2004, 13:11 PM

WWII started because of whats happening now to Germany.

Note the rise in anti Semticism and those Hells Angel types.

Germans are very jingoistic.

It is better to salvage them than sink them.

**Julie** · 12-02-2004, 13:25 PM

Quote:

Originally Posted by Gio

"For companies, a euro between $1.10 and $1.20 is pain- free,'' the DIHK's Wansleben said. "Now we've reached the zone of pain, it's starting to hurt really badly.''

I will never again question the intelligence of a cowboy from Texas.

Confed999 · 12-02-2004, 20:12 PM

Unemployment is rampant through most of the EU. Sadly, even when one gets a job it will likely be a part time affair to avoid the multitude of labor laws.

Leader · 12-03-2004, 05:00 AM

Quote:

Originally Posted by Ray

WWII started because of whats happening now to Germany.

Note the rise in anti Semticism and those Hells Angel types.

Germans are very jingoistic.

It is better to salvage them than sink them.

They can have France if they want. We won't stop them.

Ray · 12-03-2004, 05:06 AM

Quote:

Originally Posted by Leader

They can have France if they want. We won't stop them.

I am worried that they may have the world and you will be speaking German.

That is why I have learnt the language!

A big start over you!

**Gio** · 12-03-2004, 08:39 AM

I highly doubt that. I can't see it for a few centuries more, anyway. The Germans are soo pacificed and have so much WWII guilt.

Ray · 12-03-2004, 09:28 AM

Quote:

Originally Posted by Gio

I highly doubt that. I can't see it for a few centuries more, anyway. The Germans are soo pacificed and have so much WWII guilt.

Amen.

Veni Vidi Vici · 12-03-2004, 11:05 AM

Quote:

Originally Posted by Leader

They can have France if they want. We won't stop them.

They "can" have france? Who wants France. Perhaps we could make a truce stating that we wont attack them IF the take france. Next world war that occures the loser has to keep france

**Julie** · 12-03-2004, 14:11 PM

Quote:

Originally Posted by Veni Vidi Vici

They "can" have france? Who wants France. Perhaps we could make a truce stating that we wont attack them IF the take france. Next world war that occures the loser has to keep france

What a good idea!

Veni Vidi Vici · 12-04-2004, 14:46 PM

Quote:

Originally Posted by Julie

What a good idea!

Not if your the loser

Ray · 12-04-2004, 14:56 PM

I wonder how many heard the news of the unemployment in the US today.

dalem · 12-04-2004, 15:38 PM

Quote:

Originally Posted by Ray

I wonder how many heard the news of the unemployment in the US today.

What, that the unemployment rate only dropped from 5.5% to 5.4%? Less than predicted for sure, and job numbers are always changing anyway, but still, statistically it's half of the rate being discussed for Germany, and historically speaking, quite good.

-dale

Ray · 12-04-2004, 15:46 PM

Dalit,

The problem is that you are looking at things in isolation.

The US has not embraced a failing Communist part of their country into their folds.

Germany has taken East Germany which was a failing Commie joint.

East German industry and infrastructure was from the Stoneage. They are being refurbished and the impoverished East Germans are being assimilated in the united society.

The guys who were being spoon fed by the State from the womb to the tomb have now got to work. They don't want to. So unemployment and poor production and so on.

In what was West Germany do you find skinheads? No.

In the East you dol

Therefore, there will be a whole lot of hassles.

In the US, with everything in your favour including a declining dollar which means improved exports, you are staggering.

So, don't compare Germany with the US.

Stand up for your country, sure. But don't pull wool over realties.

Your unemployment rates is a little better than the Depression.

Some more Wars and you will go down or else Iran would have been on a crosswire of a sniper rifle!

**Gio** · 12-04-2004, 16:31 PM

What are you smoking Ray? Our unemployment rate is 5.4%, one of the lowest in the industralized world. You've been listening to the DNC just a little too much, sir. Great depression rates were near 25%

And yes one absolutely can compare Germany to the US, in the heyday of the Carter years our unemployment was near double digits, as was inflation. Now, Germany has less inflaiton but we had it worse when the two are added to get the misery index.

This can totally be blamed on the current social democratic govt of Germany for failing to stand up to the unions and push forward with free market reforms.

12-02-2004, 20:12 PM	#4 (permalink)
Confed999 Staff Emeritus Join Date: 09-10-03 Location: Florida Posts: 10,681 Country:	Unemployment is rampant through most of the EU. Sadly, even when one gets a job it will likely be a part time affair to avoid the multitude of labor laws. __________________ No man is free until all men are free - John Hossack I agree completely with this Administration’s goal of a regime change in Iraq-John Kerry even if that enforcement is mostly at the hands of the United States, a right we retain even if the Security Council fails to act-John Kerry He may even miscalculate and slide these weapons off to terrorist groups to invite them to be a surrogate to use them against the United States. It’s the miscalculation that poses the greatest threat-John Kerry

12-04-2004, 15:46 PM	#14 (permalink)
Ray Postmaster General *Military Professional* Join Date: 08-20-03 Posts: 25,849 Country:	Dalit, The problem is that you are looking at things in isolation. The US has not embraced a failing Communist part of their country into their folds. Germany has taken East Germany which was a failing Commie joint. East German industry and infrastructure was from the Stoneage. They are being refurbished and the impoverished East Germans are being assimilated in the united society. The guys who were being spoon fed by the State from the womb to the tomb have now got to work. They don't want to. So unemployment and poor production and so on. In what was West Germany do you find skinheads? No. In the East you dol Therefore, there will be a whole lot of hassles. In the US, with everything in your favour including a declining dollar which means improved exports, you are staggering. So, don't compare Germany with the US. Stand up for your country, sure. But don't pull wool over realties. Your unemployment rates is a little better than the Depression. Some more Wars and you will go down or else Iran would have been on a crosswire of a sniper rifle! Last edited by Ray : 12-04-2004 at 15:51 PM.

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12-02-2004, 13:11 PM	#2 (permalink)
Ray Postmaster General *Military Professional* Join Date: 08-20-03 Posts: 25,849 Country:	WWII started because of whats happening now to Germany. Note the rise in anti Semticism and those Hells Angel types. Germans are very jingoistic. It is better to salvage them than sink them.

12-03-2004, 08:39 AM	#7 (permalink)
Gio Administrator Join Date: 08-02-03 Location: Westwood, Los Angeles, California Posts: 918 Country:	I highly doubt that. I can't see it for a few centuries more, anyway. The Germans are soo pacificed and have so much WWII guilt.

12-04-2004, 14:56 PM	#12 (permalink)
Ray Postmaster General *Military Professional* Join Date: 08-20-03 Posts: 25,849 Country:	I wonder how many heard the news of the unemployment in the US today.

12-04-2004, 16:31 PM	#15 (permalink)
Gio Administrator Join Date: 08-02-03 Location: Westwood, Los Angeles, California Posts: 918 Country:	What are you smoking Ray? Our unemployment rate is 5.4%, one of the lowest in the industralized world. You've been listening to the DNC just a little too much, sir. Great depression rates were near 25% And yes one absolutely can compare Germany to the US, in the heyday of the Carter years our unemployment was near double digits, as was inflation. Now, Germany has less inflaiton but we had it worse when the two are added to get the misery index. This can totally be blamed on the current social democratic govt of Germany for failing to stand up to the unions and push forward with free market reforms.

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