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Job market in Germany

September 26, 2011
Language Jobs Ltd
The seventh largest country in Europe, Germany is counted as an enormous exporting market. Job market in Germany is considered excellent by employees as generally smart salaries and myriads of benefits are offered to the working class. However, likewise many countries of the world, Germany too is facing unemployment problem. There, unemployment rate has risen up to 12% of the total workforce. But that unemployment is mostly structural unemployment, as the mode of economy keeps on switching towards more advancement. Germany’s heavy industry like ship building, construction and mining undergo technological advancements. The jobless figures are a bit high but still the economy is not weak.

Language Requisites

Although English is considered as an essential language while you opt for any job in Germany but to be on a surer ground you have to have a complete know how of German language too. Here is the distribution of German labor force accommodated in the following way:

Services: 67.8%

Industry: 29.7%

Agriculture: 2.4%

The service sector offers huge number of jobs to people, the economy needs a few structural reforms to improve its agricultural growth in particular and growth rate of economy in general.

Economy overview

Germany has a free market economy that is liberal in nature. Major industries of Germany include machinery, chemicals, electronics, textiles, IT, Vehicles, shipbuilding and beverages. The country has rich iron resources. According to 2010 statistics the GDP (nom) is $ 3.5 Trillion with a growth rate of 2.6% where as per capita GDP that is income per head of population is $ 40,631, Exports $ 1.28 Trillion, which include machinery, pharmaceutical products, chemicals, vehicles and electrical products. Imports $ 1.079 Trillion, which include vehicles, petroleum products, electrical products and machinery.

Industries observed as declining or with a negative growth rate are of agriculture, forestry, mining and steel. Besides Germany has top-notch health care units available at cheaper rates for employees.

Some of the major companies in Germany are SAP, Siemens, Bosch, BMW, Deutsche Bank, Allianz, BASF, Diamler, Volkswagen and Bayer. Apart from that Germany’s tourism industry also offers temporary jobs.

Consumer Price Index (CPI) and Inflation Rate

The world witnessed one of the worst forms of hyperinflation in Germany in 1923 due to the dramatic acceleration in deficit financing. Measures were taken by the government to stabilize the economy and by 1924 the economy was substantially under control. Recent CPI inflation in Germany is 2.399%. The average inflation rate in Germany is 1.90%

Tax Rate

Taxes are progressive in nature, that means every class of economy is not obliged to pay the same tax rate, the tax rate is higher for income higher income groups, according to 2009 statistics it range from 0-45%.

Interest rate

Germany being a member or Euro Area follows the Euro Area Benchmark interest rate that is 1.00%. The European Central Bank takes major decisions regarding interest rate.

Exchange Rate

Fixed exchange rate was considered infeasible since 1973, after that most countries follow floating exchange rate that are determined by the forces of demand and supply of currency in the market or adjustable exchange rates. According to September 2011 statistics a Euro buys $ 1.3864. People from different parts of the world seek for German jobs for the German market place because of the many benefits the German job market offers to them. In the service sector especially the jobs are in abundance.
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