Germany's Economic Crisis Deepens: Unemployment on the Rise
415 sats \ 9 comments \ @TomK 29 Jun econ
Germany is facing a worsening economic crisis, with the job market showing significant signs of distress. In June alone, unemployment rose by 4,000, pushing the total to 2.73 million, an increase of 172,000 compared to June 2023. This has raised the unemployment rate to 5.8%.
Moreover, over 4 million people are now receiving 'citizen's income' (Bürgergeld), and another 3.5 million are underemployed. Many of these individuals are not counted in the official unemployment statistics due to being enrolled in training programs or other temporary activities.
Despite these alarming numbers, the government continues to focus on its ideological agenda of climate change initiatives and green economic reforms, neglecting the immediate economic challenges.
write
preview
related posts
42 sats \ 1 reply \ @SatsMate 29 Jun
Germany is one of the flagship countries in the EU as it comes to production and is financially important.
If Germany falls, many other countries will get quite sick.
reply
0 sats \ 0 replies \ @TomK OP 29 Jun
It's already failing
reply
42 sats \ 0 replies \ @Msd0457890 29 Jun
I sincerely think that it is something that was already seen coming as not focusing on the economy of a country affects its citizens, in all areas.
reply
63 sats \ 1 reply \ @wingalt 30 Jun
Governments like doubling down on their failures, while private entities readjust when losses are too high, the public sector's mindset is "well it doesn't work so one needs to do more of it, right?" Fighting Russians after losing a 20-year war against Talibans, never ending escalation of a losing war in Ukraine, go after Hezbollah after failing to defeat Hamas, name your failed public policies and be guaranteed that you'll get more of it
reply
0 sats \ 0 replies \ @TomK OP 30 Jun
Yep
reply
42 sats \ 3 replies \ @Signal312 30 Jun
Interesting. I'm traveling through Germany now, and I see an insane number of help wanted signs. Just all over the place, seems like every business is looking for employees.
I did just read an article about how in the US, many job listings are fake - companies trying to bolster their reputation ("we're growing") or developing a database of potential employees. Maybe it's the same thing in Germany.
reply
0 sats \ 2 replies \ @TomK OP 30 Jun
The problem that Germany has is that climate over-regulation, high taxation and a sprawling welfare state stifle any form of economic activity in the lower wage segments. The atrocious energy policy is driving energy-intensive companies abroad. The economy has shed around 175,000 full-time jobs in the last year. The trend will continue to accelerate if nothing changes. Regarding the statistics: of course it's all fake
reply
63 sats \ 1 reply \ @wingalt 30 Jun
Germany used to subsidise the southern PIGS states, who is gonna pick up the tab if Germany and France are in trouble?
reply
0 sats \ 0 replies \ @TomK OP 30 Jun
but you must not forget that with the introduction of the euro and the establishment of a low-wage labor market segment, Germany has run a neo-mercantilist model that has generated a huge trade surplus. the euro was at least 25% undervalued compared to D-Mark until today and that has made exporters rich.
reply