Thursday, July 7, 2016

Labor market: The German job miracle pauses – THE WORLD

For international labor market experts Germany is an island of the blessed. For years here decreases the number of unemployed, as the employment outlook Organisation for Economic Co-operation and Development (OECD) shows. In hardly any other industrialized or emerging country also falls youth in entering the labor market more easily. And wages have risen since 2007 in this country much more than was the case in most other countries.

But the OECD pours well water in the wine: Better than today it will probably for a long time no longer. On the contrary: In the coming months, a large number of refugees will come to the labor market – most of them but will initially be without a job

In Germany. the unemployment rate of 4.3 percent is significantly lower than the OECD average, which is around six percent. 2007 was reversed: At the time, eight percent of the local workforce had no job, while the average of all major industrial and emerging countries at the time with almost six percent clearly lay beneath

But the German job miracle is now, according to the forecast of economists, take a break. The OECD assumes that the steady decline in unemployment no longer continue in Germany this year and next, according to the analysis. “The labor market entry of refugees who have come over the past year to Germany, but the key factor,” said the OECD labor market expert Kristine Langenbucher. Overall, refugee migration but will only slowly visible in the labor market, and much depended on how quickly processed asylum applications and to what extent they would positively decided.

Photo: Infographics world

In Germany asylum seekers are allowed, if they have a residence permit, work after three months. Provided however, that the employment office of the Employment agrees. This requires a rule to determine whether there is no suitable candidate from Germany or the EU for the specific job. This priority check hold many economists for an unwarranted barrier.

The OECD predicts that refugees are found only in the rarest cases equal a job. “How fast the integration succeed in the labor market depends on language training, training and recognition of existing qualifications from” warn the experts. In particular, the shortening of the duration of asylum procedures and better language support, the federal government now recognized as a priority task and tackled.

has improved considerably in Germany the situation of long-term unemployed. As the report shows, the proportion of workers who are at least one year without employment declined since 2007 from 4.6 percent to less than two percent. Thus, Germany is below the OECD average of 2.2 percent. “The decline in share of long-term unemployed shows that the economic upswing will also benefit the disadvantaged,” says the organization.

The positive trend can also be observed in young people. To register the OECD a significant decline in the proportion of young people between the ages of 15 and 29 who have no vocational qualifications and are not on the payroll even in training. Was there in 2007 among young adults still around twelve percent, which fell into this category, so this applies now to only eight percent. OECD-wide, the rate is almost 15 percent. Where France, Spain and Italy even lie significantly above this average in part.

The fact that in Germany more and more people manage to break into the labor market , also makes the employment rate remains well: Of all living here people aged 15 to 74 years of age working almost two-thirds. The labor market researchers are aware of our elders in the view. “In many countries, people are now working significantly longer than was the case even a few years ago,” says OECD expert Langenbucher.

In this country has risen sharply between 55 and 65 years of age in recent years, the proportion of older workers. Even though working in Germany but only a small minority beyond the legal retirement age, which now stands at 65 years and five months. Introduced by the grand coalition tee free retirement at 63 has the trend towards longer working also put a damper. Especially around half a million people have already made use of the scheme.

Photo: Infographics world

When temporary employment is Germany compared to the midfield. Around twelve per cent of workers in this country have no permanent job. However, also in this point, the statistics show a decline, since 2007 the rate was still at nearly 15 percent. “Even this positive trend reveals that the upturn has improved the chances of a good job,” says labor market researcher Langenbucher. In the crisis-ridden Spain one in four works in a temporary location. In Sweden and Finland to do about 17 percent of all employees. Very clearly, Germany takes off in wage developments from the global trend. Thus, real hourly wages since 2007 put this country to almost 15 percent. OECD-wide increase of just seven percent is only half as much.

While the global financial crisis was the German labor market harm little, feel other countries the consequences the slump until today. Although note the economists that almost ten years after now returns the employment rate in the OECD area by a significant drop back to the level before the crisis. With real wages, however, the pre-crisis has still not been reached again in many countries. In particular, the euro area intersects weakly from a few exceptions.

Overall, the researchers register for three quarters of all OECD members either lower employment rates and lower wages than before the financial crisis. It is therefore urgently necessary to carry out growth-enhancing measures and structural reforms. The problem however, was that sometimes necessary reforms shortly unemployment even higher. So warns the organization – especially with a view to France – to continue the most unpopular labor reforms

The experts assume in their employment outlook and the quality of jobs in. the views. It is about the income to the job security and the quality of the working environment. While Germany has recently made good in wages and job security as a result of the long boom clear bottom, this is only partly true for the quality of the working environment, as the study notes. The researchers see in the local companies need to catch up in work organization. So countries such as Finland and Sweden are often erected modern. There were more teamwork, workers would also supports targeted with mentoring programs. Also job rotation is an effective means to better exploit the potential of employees.

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