10/30/2009

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

MUNICH     Bavaria’s Minister of Economic Affairs, Martin Zeil, explains the labor market statistics released today by the German Federal Employment Agency: “The labor market in Bavaria again proved to be remarkably robust in October. The number of jobless has fallen surprisingly sharply, so that the Bavarian employment market is still more stable than in any of the other German states.“ The economic crisis was, however, leaving ever deeper impact on the Bavarian labor market as well. The autumn revival was weaker than usual. Compared with 2008, unemployment has increased noticeably. Zeil: “We have a hard winter ahead of us on the labor market. The situation is getting more difficult.”

According to the Minister, the liquidity buffers of many businesses will dwindle. While sales losses remain high, it will become increasingly difficult for companies to shoulder the costs of short-time work. It was all the more important that the new German Federal Government provides relief for companies by the turn of the year in its emergency tax program. “The corrections to the corporate tax reform will help to maintain liquidity in the companies, guarantee corporate financing and so secure jobs. The new black-and-yellow coalition (CDU/CSU/FDP) is concentrating on sending the right signals for growth and employment as of day 1”, Zeil added.

According to the current statistics from Nuremberg, 297,921 people in Bavaria were out of work in October, which was 23,525 fewer than in September. The rate of unemployment dropped to 4.5 percent.

Source: Invest in Bavaria

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