Empirical analysis of the risk of social exclusion of long-term unemployed young people in Germany

Abstract

The theme of youth unemployment has become a socio-political problem in Germany primarily in the last few years. In comparison to other Member States of the EU, the youth unemployment rate is relatively low. In some southern European countries, the rate is two to three times higher than in Germany. The yearly average for Germany in 1997 was 10.3% (under-25-year-olds); in most European countries, it has proven to be much higher (for example in Spain, 38.8%). Even though the problem of youth unemployment in Germany has not at all reached such proportions, the rate of unemployment for under-25-year-olds has been rising steadily since the beginning of the 1990’s. The new German government has reacted to this development with a legal initiative to combat youth unemployment. Since then, prospects have brightened slightly on the labour market (Frankfurter Rundschau, 7-7-1999, p. 11). Nevertheless, the unemployment rates remain at a socio-politically unacceptably high level. In 1997, the yearly average was 12.7% for all employed civilian wage earners (western Germany 11% vs. eastern Germany 19.5%), whereas, according to EU norms, the average rate for all civilian wage earners was 11.4% (western Germany 9.8% vs. eastern Germany 18.1%). For 20–24year-olds, the average was 12.4% in western Germany and a much higher average in eastern Germany at 22.3% (Bundesanstalt fur Arbeit, 1998). The dramatically greater unemployment problem in eastern Germany in general and for young people especially can be accounted for in the diverging economic developments following the unification of Germany. Despite the comparably favourable and varied possibilities for qualification, young people are often hit by unemployment. Stagnating production branches (for example, the construction industry) have an influence on the employment practices and hiring preparedness of businesses and can be viewed as an essential cause of the divergent economic developments in East and West. Problems in the conversion of businessinternal training to one of the market economy system are also to be considered in this context.