7/30/2009

Bavaria’s Economics Minister Zeil comments on labor market figures for July 2009

MUNICH    “The Bavarian labor market had fortunately been very robust in July as well. Although the economic crisis is also leaving deep scars on the Bavarian economy, the level of unemployment in July is only slightly up on the month before”, commented Bavaria’s Minister of Economic Affairs, Martin Zeil, referring to the labor market statistics released today by the German Federal Employment Agency. Another ray of hope was that the situation on the Bavaria labor market was still better than in any of the other German states. Zeil: “Now we are benefiting twice over from having achieved full employment in many parts of Bavaria during the last upswing. That is at least giving our labor market some breathing space.”

Zeil is nonetheless expecting unemployment to rise significantly after the summer break. Even if the first tender signs of a more stable economy were just beginning to become visible, it was too early to give the all-clear. “The crucial test is still to come”, the Minister added.

“The longer the economic downturn lasts, the more it will affect the business community“, according to the Minister. Zeil pointed out that while short-time work was certainly helping to bridge the crisis, it was not a permanent solution. Now it was more important than ever to create the basis for new growth and new employment. Bavarian economic policy relied on a consistent growth strategy. “We encourage investment, ensure renewed growth in SMEs, promote future-proof innovations, invest in education and take care of the development and upgrading of economic infrastructure. Politicians have an obligation to play an active part in shaping the future. We meet this obligation”, explained Zeil.

According to the current statistics from Nuremberg, 311,207 people in Bavaria were out of work in July, which was 326 more than in June. The rate of unemployment remained unchanged at 4.7 percent. In May, the level of employment of the previous year was still exceeded by 1,300 jobs subject to social security contributions. 

Source: Invest in Bavaria

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