German Unemployment Hits Postwar High

[chlamor]

German unemployment hits postwar high

Mark Tran
Thursday March 31, 2005

Germany's unemployment rate rose to a postwar record in March, causing a political headache for the chancellor, Gerhard Schröder, ahead of crucial state elections.

The number of people seeking jobs rose by 92,000 in March, adjusted for seasonal swings, the federal labour agency reported - the 14th successive monthly increase. The unemployment rate rose from 11.7% to 12%, with more than 5 million people out of work.

However, the economics and labour minister said unemployment had peaked and the trend was now turning.

"I believe we will get below the 5 million mark this spring and that we will not reach it again in the future," Wolfgang Clement said.

The jobless figure climbed above 5 million for the first time in January in a reflection of persistent German economic weakness and following a reform in the benefits system that has meant more people being registered as unemployed.

http://www.guardian.co.uk/germany/article/0,2763,1449285,00.html