Abstract

Agriculture has been losing importance in the creation of employment in Germany for many years now. The effects of this structural change vary widely among the different regions of Germany. In Western Germany, the release of workers from the agricultural sector has been offset by the creation of new jobs in other sectors. Particularly in Southern Germany, small- and medium-sized enterprises (SMEs) are providing employment in rural areas. These enterprises are mainly active as suppliers for the automobile or electrical engineering industries. The rural areas of Bavaria and Baden-Wurtemberg, both in Southern Germany, have unemployment rates that are only slightly — if at all — higher than these states’ average unemployment rates, which are about 6%. (The unemployment rate in Germany as a whole is about 10%–11%).

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