Economic growth and the “new labor market” in Germany. The persistent high level of unemployment in Germany is usually blamed on the country’s inflexible labor market. This article attempts to show that in Germany - as in comparable countries - employment is primarily determined by economic growth. However, the growth of the German economy has been lagging behind the European average for some time. The article briefly discusses why this has been the case. The study contradicts the widely held theory that the German labor market restricts economic growth, and instead advances the proposition that the German labor market has changed to such an extent over the past few years, that the term “new labor market” is indeed warranted. This “new labor market” is regionally differentiated, as will be shown at the hand of “Bundesländer” (Nuts I regions). In particular, differences emerge between East and West Germany, but economically successful regions (Baden-Württemberg) with low unemployment levels also differ from structurally weak regions (Lower Saxony) with regards to the “new labor market”.
Apprenticeship, Vocational Training and Early Labor Market Outcomes in East and West Germany
