German Unemployment Dips to 18-Year Low in October

[flintlock]

http://www.cnbc.com/id/39885973

German unemployment fell slightly in October, dropping to its lowest level in 18 years as the impact of persistently strong growth in Europe's top economy continued to filter through to the jobs market.

What is Germany doing right?

[Shakespear]

Re: German Unemployment Dips to 18-Year Low in October

Come to Poland and you will find part of the mystery. EXPORT to the EU and else where.

I see this on a micro scale so I do not know all the players from Germany here, but there is a massive influx of large grocery chain stores here from Germany, autos, electronics, specialized home equipment etc.

I doubt if the same will be seen in Germany of imports from Poland, but like I said, I only see the Germans here on a micro scale of their trade and have not been there. My is Street Level View

http://www.bloomberg.com/apps/news?p...d=an0ME5IcV5bY

Global Fortunes

While all the pump priming may keep the economy afloat in 2009, Germany’s potential for growth remains a hostage to global fortunes. Last year, exports accounted for 47.2 percent of Germany’s GDP, more than double the proportion in Japan and almost four times as much as that in the U.S. In the 11 months ended on Nov. 30, Germany exported $1.376 trillion of goods, just ahead of China’s $1.317 trillion, according to the German Federal Statistical Office. The EU alone accounted for 63.6 percent of the country’s exports.

[gnk]

Re: German Unemployment Dips to 18-Year Low in October

http://www.cnbc.com/id/39885973


What is Germany doing right?

I agree that Germany is doing something right, but they also would not be as successful if everyone else wasn't doing something wrong: printing.

It is mathematically impossible for all nations to attain the kind of surplus from trade that China and Germany enjoy. Thus, their success is based on the unsustainable money printing consumption based economies of many other countries. How wise is that?

Shakeapear's post above is correct, as I am seeing the same thing here in Greece. Large German-based retail stores and many Chinese run stores as well. But how successful would they be if Greece was never "bailed out?"

In the end, it's not just the extreme failures that run consistent trade deficits that are a threat to global economic stability - but also the extremely successful consistent trade surplus countries too. Global trade cannot sustain itslef with such massive imbalances.

[Shakespear]

Re: German Unemployment Dips to 18-Year Low in October

But how successful would they be if Greece was never "bailed out?"

Good point. In Poland lots of people work part time in Germany and commute. They do this on a rotation bases, month or 3-4 week. There has also been some noise here that Germans are opening their job market to "professional" workers from Poland. Again, come work for us cheap and then get the heck out. Rest are not wanted though borders are supposedly open. They are, but not for everything. :-)

But even this will have an end sooner rather than later as prices are rising rapidly. VAT raised 1 % to FIGHT the deficit. Noe Brussels demands that Poland raise VAT to 22 % on children's clothing from current 7%. Nice.

We have the most expensive electricity in Europe. Guess who owns the electric plants, many are NOT in Polish hands. They just wanted to raise electricity 20% !!!!!!! Gov. says they will allow 7%. These raises has been many in the past few years.

[llanlad2]

Re: German Unemployment Dips to 18-Year Low in October

Germany does many things right.
For a start Germany has never de-industrialised and has a culture of long term investment in plant, equipment and people (apprenticeships, continuous job training etc). This is helped as their finance sector also has much stronger links with industry and often shares in the profits of the companies they loan money to.
The Germans also avoided a property bubble and so don't have the debt overhead to cover when paying their workers. They also have strong regulation to encourage competition which is enforced thus allowing easier access to markets for new businesses and prevents many leveraged buyouts.
As a result Germany is very efficient with low rents, a skilled workforce and modern equipment.
Finally Germany's main market and competitor is all the countries in the rest of Europe which have to compete on level playing field due to the Euro. Basically the Meditteranean countries and the poorer East European ones don't stand a chance.