Germany: two studies drastically divided revive the debate on the protection against dismissals

Economy (IW), close to employers, and the Institute of Economic and Social Research of the Hans Blocker Foundation, close to unions, chose the same day to publish studies on the impact of the statutory dismissal protection system. The first says that this system costs businesses €7.5 billion a year and prevents 40.000 recruitments each year. The second shows that only 1 in 8 employees laid off presses charges and that 16% of dismissals are financially compensated. (Ref. 090170)

In Germany,...