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 : )