Berlin predicts 150,000 jobless rise over 2005

24th January 2005, Comments 0 comments

24 January 2005, BERLIN - German Economics Minister Wolfgang Clement is expecting the country's joblessness to rise by an average 150,000 in 2005 due to the statistical effects of Berlin's social and labour reform, the daily Berliner Zeitung reported. In its Monday edition, the paper cited the figure from a report on the economy which Clement is due to issue this week. The paper said that Berlin is bracing initially for higher jobless numbers because under the so-called "Hartz IV" reform, social welfare re

24 January 2005

BERLIN - German Economics Minister Wolfgang Clement is expecting the country's joblessness to rise by an average 150,000 in 2005 due to the statistical effects of Berlin's social and labour reform, the daily Berliner Zeitung reported.

In its Monday edition, the paper cited the figure from a report on the economy which Clement is due to issue this week.

The paper said that Berlin is bracing initially for higher jobless numbers because under the so-called "Hartz IV" reform, social welfare recipients will be included in the unemployment rolls whereas previously they were not.

Clement's report is expected to predict that after the initial rise in jobless figures, there will be a a clear decline in the second half of 2005, the Berliner Zeitung report said.

According to the Federal Statistics Office, German unemployment in 2004 averaged 3.9 million, up by 82,000 from the year before, for a rate of 9.3 percent.

Clement's report is also expected officially to project a 1.5 to 2.0 percent rise for the German gross domestic product (GDP) this year. But internal government projections are for a 1.6 percent rise. In 2004, the GDP grew by 1.7 percent.

DPA

Subject: German news

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