Brussels, 25/09/2012 (Agence Europe) - Despite economic indicators that are the envy of the other European countries, Germany now has to face up to a number of trends on its labour market that illustrate the social challenges that lie ahead and show that every economic model has its grey areas. The over-representation of partial work, poverty of part-time workers and the fact that productivity and the level of earnings are not in line are just a few examples that show that “despite its good performance, Germany cannot rest on its laurels” - all the more as some employment policy choices in Germany maintain a certain imbalance in the eurozone.
Commissioner Laszlo Andor, responsible for employment, social affairs and inclusion, put his finger on the grey areas of the German model during a speech in Berlin on Monday 24 September. Firstly, however, Andor wished to point out why Germany is today considered a model of economic performance. It has, he said, an employment rate (76.3% in 2011) which is already at the objective set by the EUROPE 2020 strategy, a rate of employment for women and older persons that is among the highest in the EU, and a rate of overall unemployment that is half that in the rest of the eurozone.
For Andor, however, even those good results cannot conceal a number of difficulties, which are of the social as well as commercial variety. In the first category, three jobs out of four created between 2009 and 2010 were part-time jobs, mostly held by women. This promotes the “in-work poverty” phenomenon. The challenges to be overcome in the second category affect the whole of the eurozone. “Germany has stepped up its competitiveness by increasing wages more slowly than other euro-area countries”, which has among other things contributed to creating “imbalances in the euro area”, Andor said. Although a number of measures have already been taken, such as an agreement on the salaries of part-time workers or a slight readjustment of earnings compared to the rise in productivity, other measures will be needed, he warned. It is essential to make an effort as the active population will be shrinking, while the shortage of qualified labour in Germany is already a reality, he said. (JK/transl.jl)