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The German Job Roulette
Index
The German Job Roulette- What is it? Historical backgrund Facts and consequences Ways to get out Current news Sources Surprise : )
What is it?
Globalization has split the German workforce No security for jobs Imbalances between winners and losers in
Globaliziation -> Germans losers, Eastern Europeans winners
Historical Background
Globaliziation power served Germany:- German goods were global leaders-German workers most qualified, highest wages, safe jobs, best social benefits
Model economy
Mid- 90's: 1,3 Mio. workers fired in construction sector--> upcoming service and export industry wasn't used by unemployed
2004: workers from the East pushed into Germany ( subsidized by Brussels)
Record of unemployment
Facts and consequences Lost jobs in
agriculture and coal mining by replacement from cheap workers
Increase of economy, per capita income, investments, etc.
Companies relocate jobs in the East
Finding work in the automotive industy or chemical engineering (germanys growth sectors)
Hundrets lost jobs or had to wait long for their wages
Germany biggest investor in the East
highly motivated, disciplined, unbeatably cheap workers ( e.g. Seasonal Workers)
Still employed earn less, work more
High qualified workers difficult to replace
Germans victims of globalization (too expensive), can't compete with foreigners
Acception to save jobs
Winners of globalization
Ways to get out
Intervention by the state against capitalism, job migration
Introduction of minimum wages in East
Minimum Wage
e.g. artificcially raised wages--> companies would flee, free to locate were they want
Everybody earns from low prices
Germans could compete again
Problem with Hartz VI receivers
Rules for companies
No more 1€-jobs, lowwage jobs (1/5 of emploees)-> raise of unemployment
Loss of jobs- test of min. wage in costruction industry led to 650.000 unemployed
Illegal employment No banning for exploitation Employees: No one can stop
people to get money for a better living standart
Current news
Economy grows again (2,4% per year)
People want German quality back
Less unemployed (8,7%)
Sources
http://de.wikipedia.org/wiki/Wirtschaft_Deutschlands
http://www.spiegel.de/img/0,1020,498041,00.gif http://www.cartoonstock.com/lowres/jfa0258l.jp
g Spiegel Special, International edition No. 7 /
2005 „Globalization“
Thanks for your attention and Merry X-Mas : )