GERMANY: UNEMPLOYMENT STANDS AT A RECORD HIGH

(21 Mar 1996) German/Eng/Nat

German unemployment stands at a record four and a quarter million - the highest it's been since World War Two.

And with unions and employers unable to agree on solutions to the problem, a new class of unemployed is emerging - skilled professionals.

The signs pointing to this employment office mark the path which more and more Germans are forced to take.

The unemployment total broke the four million barrier earlier this year, and is continuing to rise.

With the economy slowing down towards recession, those seeking jobs are confronted with ever diminishing opportunities.

And it is graduates who are now finding fewer job opportunities. Since 1992 the number of university graduates unable to find work has gone up by almost 20 per cent.

SOUNDBITE: (German)

"More and more people are coming to us as unemployment increases. Recently we have seen more and more skilled workers, people one would think would have no problem finding work, but they too are in danger of losing their job."

SUPERCAPTION: Thomas Rosumek- Mathes, social worker.

Andreas Mueller, a 31 year old law graduate from Berlin, was hoping to find a position in German industry. But after a fruitless year of searching, he was forced to move back to his parents' home.

Lack of opportunities in Germany has led him to apply for jobs abroad.

SOUNDBITE: (English)

"I was much more optimistic a year ago. I, my idea was to get into German industry and I actually I must say I had a lot of interviews during this period of search. And in many cases I had a chance to talk to them and they were very friendly, but there was no job."

SUPERCAPTION: Andreas Mueller, Unemployed Law Graduate

Where Andreas is prepared to get on his bike to seek work, German employers are finding investment opportunities in their own country more and more expensive.

Even successful companies such as BMW, with highly efficient
production capabilities, cannot afford further investment for growth in Germany.

It's a problem which has seen many companies opting to invest overseas, rather than at home, to guarantee returns for shareholders.

Other company managers say Germany should revise its rigid employment laws if its industries are to remain competitive.

SOUNDBITE: (English)

"Germany needs a more flexible labour market and labour regulations. We do not only have the shortest working time, we also have the least flexible one. There are regulations about how many hours should be worked per day, how and if there shall be work on Saturdays or on Sundays. All that comes in addition to what employers have to pay in taxes and social expenses. There are also amongst the highest in the world so we really need a release at that place."

SUPERCAPTION: Erich Gerhard, Siemens Manager, Berlin

But the unions are unhappy with the way the government seeks to solve the problem.

They see an unfair share of the burden of restructuring industry being placed on employees' shoulders.

SOUNDBITE (German)

"We need solutions, reasonable solutions. Not just continually sinking taxes for employers and ever rising taxes and social insurance contributions for employees. That's not on.

SUPERCAPTION: Christiane Bretz, German Trade Union Federation

With falling investment slowing growth and with disagreements between
unions and employers about how to tackle the problem, there seems to be little sign of hope for Germany's unemployed.

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