Unemployment and inflation are the two factors made of social unrest. Even a lazy, tired spaniel will eventually take to the streets. Labor Secretary Hubertus Hill does not seem to understand this.
Productions of “Verbotene Liebe”, “Marienhof” and “Lindenstrasse” have long been discontinued, but this does not prevent the state from performing frequent TV series. One TV series is called “The Unemployment Figures”. Reliable as a false Swiss watch, the recruitment agency publishes stylized figures. The media, in turn, was actually invented to criticize the government, spreading this false news with equal reliability.
The unemployment rate rose more sharply in July than usual for that time of year. However, this is due to the registration of Ukrainian refugees. In general, the labor market remains stable despite all the burdens and uncertainties.” Federal Labor Agency (BA) board areasDaniel Terzenbach.
It should come as no surprise that Mr Terzenbach speaks of “the stable” as a senior staff member. However, to many employees who are going through the inflation of their lives, this word sounds like a mockery. In the future, this will be about the abstract existence of many.
The runners in Bavaria and Baden-Württemberg
Month number 2.47 million. According to a press report from Nuremberg, this is the number of unemployed people, which corresponds to 5.4 percent. This statistic, which I have already reported in detail in older posts, is incorrect (see for example here). My conservative estimate is about 5 million unemployed, but maybe more.
It is interesting to look at regional differences in unemployment. The undisputed leader is Bremen with 10.3 per cent, followed by Berlin with 9 per cent and Mecklenburg West Pomerania with 7.5 per cent. I looked another way: If you take my estimate of the unemployed, more than every fifth Bremen citizen is unemployed.
A total of five states are below the federal average for the official unemployment rate of 5.4 percent: Schleswig-Holstein (5.3 percent), Hesse (4.9 percent), Rhineland-Palatinate (4.7 percent), Baden-Württemberg (3.6 percent), Bavaria (3.2%). percent). Remarkably, there is not a single federal state in East Germany that undermines the national average. Only Thuringia equals the relative sum of 5.4 per cent.
State financial equation as a stop premium
If you look at the West German states separately, these states will reach 5.1 percent, while the East German states will reach 6.8 percent. More than 30 years after the fall of the wall, structural differences are clearly visible. One thing is also clear: the fiscal balance of the federal states in no way guarantees further prosperity if one takes the unemployed as a factor.
A total of eleven federal states are net recipients of the fiscal equation. Berlin is the leader here with more than 3.6 billion euros, followed by Saxony with about 3.3 billion euros and Saxony-Anhalt with about 2 billion euros. On the other hand, Bavaria, Baden-Württemberg and Hesse are the main drivers of redistribution, which can certainly be described as “from West to East”. Ironically, net shareholders also have a lower unemployment rate. In principle, the machine operator in Schweinfurt pays for the potatoes in Neukölln.
This “stop bonus” in the form of the state’s fiscal equation has worked well for decades. In Landel or in Munich, Würzburg and Wiesbaden, people did well. Wages rose slowly, but they rose. Of the burdens of the state waiver, but they accepted it. This is likely to change in the coming years as higher prices will bring people back to Earth.
Meanwhile, Secretary of Labor Hill is planning a so-called no-penalty citizen’s bonus, which is in effect an unconditional basic income. Health Minister Karl Lauterbach announced weeks ago that contributions to health and long-term care insurance would increase. On the one hand, Germany is swelling as it has not in decades, and on the other hand, the burden of the state is also increasing. This should not bother the long-term unemployed in Neukölln. But the machine operator in Schweinfurt does just that.
Julian Marius Plotz He was born in 1987 and runs his own blog neomarius. His main job is in human resources. Once a month he comments on the latest developments in the labor market.