Bavaria’s Economics Minister Zeil comments on the labor market figures for December 2008

Zeil: "Pleasing result for the year 2008, but first signs of darker clouds on the horizon at the end of the year"

MUNICH Martin Zeil, the Bavarian Minister of Economic Affairs, described the annual balance for the Bavarian labor market in 2008 as exceptional pleasing: “Unemployment is at its lowest level since the reunification of Germany. The number of jobs has risen to a new record high. In the autumn, much of Bavaria still had practically full employment.”

 

However, the current economic crisis finally reached the Bavarian labor market in December. The increase in unemployment was well above the December figures of past years. The rise could not be explained by seasonal factors alone. “We have passed the zenith in reducing unemployment for now”, commented Zeil, in response to the labor market statistics published yesterday from Nuremberg. All the same, it was gratifying to see that the current rate of unemployment of four percent was still the lowest in all Germany and the best December level since 1991.

 

In employment policy terms, the Minister expects 2009 to be a difficult year. It was a matter of pulling out all the stops to keep the imminent job losses as low as possible. The Bavarian State Government had already taken appropriate steps on State level by adopting an economic package in November. The Minister welcomed the fact that the Grand Coalition in Berlin now also intended to follow suit on the necessary scale. He wants the package to focus on three key areas.

Zeil: “First of all, the people and the business community must get tens of billions in tax cuts. Secondly, more funds must be provided for public-sector investments already in the pipeline. And thirdly, obstacles blocking private investment have to be removed. In view of the gravity of the crisis, it is now important not to go for half-measures. But once the economy has stabilized, the public authorities must immediately return to their policy of consolidation.”