Germany showed a drop in unemployment this morning but the Chancellor says there are no signs of a turn around in the labor market.
The government’s temporary work scheme has helped keep unemployment from rising as far as it typical would have had in the sort of environment in the past. Kurzarbeit, as the program is known, has been blamed by employers for raising employment costs and has been cited by others for distorting the labor market.
Pick your poison…Either pay to keep people employed or pay them unemployment benefits…Looks like Germany has chosen the lesser of two evils.