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Essay / Research Paper Abstract
The German labour market has seen many challenges since reunification with East Germany. This 10 page paper considers some of the current problems of an inflexible workforce in culture that placed a high level of social burden on employers. The paper includes discussion of the potential policies that should and are being adopted to reduce unemployment. The bibliography cites 9 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEgerlabm.rtf
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Unformatted sample text from the term paper:
an increased supply of cheap labour, in a market that has a long history of high social payments and collective agreements. Over the last decade there has been an increasing
realisation of the need for change in the structure of the German workforce to increase flexibility and attract investment to create jobs. Unemployment is a serous problem in the
area, in December 2005 it was running at 11.1%, with 4.6 million registered unemployed (Ewing, 2006). However, the rate of increase has been slowing down, with an increase of 75,000
rather than 175,000 in 2005. Some of the reforms have been unpopular, such as the cutting of welfare benefits and the placement of pressure on the unemployed to accept lower
paying jobs (Ewing, 2006). The rates is not as high as in the past, but if we look over the last 2.5 years the high level is seen present throughout.
Figure 1 Unemployment in Germany 2002 0- 2005 The resolution to the problem is seen as complex, to understand how unemployment may be resolved and the labour market
restructured, we need to look at the culture that has guided and led the labour market to the current position and how this will need to be managed.
The market structure in Germany is one of Capitalism. Capitalism in Germany is not the same as the Anglo-American model of capitalism, is also known
as the social model of capitalism or sessile marthektwirtscharft (Edye et al, 1996). Capitalism in Germany is relatively new, especially in East Germany which shed its communist roots less than
twenty years ago. State intervention in the German economy can be argued as higher to ensure that results are socially acceptable. Edye (et al) described this German attitude to capitalism
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