Germany: booming partial unemployment particularly affects the automotive sector

On January 7, the Federal Employment Agency (BA) confirmed a sharp hike in requests for short-term partial unemployment measures. Around 300.000 applications were recorded last December against 9.152 the previous year. “This tool was largely used in the early 90s to mask the extent of unemployment in the former DDR following the reunification. Today, it is on another upswing”, Holger Schäfer, labor market specialist at the IW economic research institute, told Planet Labor. Consequently, the BA Agency is expecting booming costs and has budgeted €300 million to pay for partial unemployment compensation in 2009, i.e. three times more than in 2008. But, according to its President, Frank-Jürgen Weise, these costs could well rocket to €1 billion this year.
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owing the reunification. Today, it
is on another upswing”, Holger Schäfer, labor market specialist at the IW
economic research institute, told Planet
Labor
. Consequently, the BA Agency is expecting booming costs and has
budgeted €300 million to pay for partial unemployment compensation in 2009, i.e.
three times more than in 2008. But, according to its President, Frank-Jürgen
Weise, these costs could well rocket to €1 billion this year.

The automobile sector in the front
line.
A large number of f

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