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Market-based Dialogue Germany Needs the Project Full Employment
Full employment is within reach – this was the consensus at a discussion organized by the Initiative for a New Social Market Economy (INSM) in Berlin. The route, however, remained controversial. The market-based dialogue is a series of events organized by the INSM. This time, the dialogue featured the two labor market politicians and members of parliament Brigitte Pothmer (The Greens) and Dr. Carsten Linnemann (CDU). Also present were the economist Prof. Thomas Straubhaar from the Hamburg Institute for the World Economy (HWWI) and Prof. Gustav Horn from the Institute for Macroeconomics and Cyclical Analysis (IMK).
Straubhaar, director of the HWWI declared that the contemporary labor market profits from the reforms of the previous decade. He maintained that the Agenda 2010 provides lasting relief and that the positive economic situation and the demographic change also favor the decline of unemployment. “However, full employment is not a fast-selling item”, said Straubhaar. That is why he demanded an eschewal of the minimum wage, flexible working hours in order to strengthen the compatibility of work and family life as well as lifelong learning to enable older workers to stay in the job market longer.
The issue of lifelong learning remained uncontroversial. However, both the spokesperson for labor market policy of the Greens Pothmer and the director of the IMK Horn argued in favor of minimum wages. Horn rejected further labor market reforms. Not the Agenda 2010, but the unions and management would create flexibility on the labor market.
Linnemann argued that Germany was suffering from a low number of self-employed persons and company founders while job opportunities for those with few qualifications are scarce. He stated that these problems would be exacerbated by a minimum wage.
Brigitte Pothmer criticized the federal government for its intentions to cut the budget of its program to promote the labor market. She stated that such a promotion is crucial to give the long-term unemployed a chance and prevent a further fission on the labor market between the qualified and the chanceless.
After the event, INSM chief executive Hubertus Pellengahr said that the discussion confirmed his belief that the chances for full employment were never better than today. Accordingly, he stated that this was the reason why Germany needs a “Project Full Employment” so that the chance would not go unused again.
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Public relations: Florian von Hennet, phone +49 30 / 27877-174, hennet@insm.de
