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Workers assemble the new Porsche 911 sports car at the Porsche factory in Stuttgart-Zuffenhausen, Germany. There is effectively full employment in the South and Southwest of the country, while the East and parts of the Northwest suffer from double-digit jobless rates.
Workers assemble the new Porsche 911 sports car at the Porsche factory in Stuttgart-Zuffenhausen, Germany. There is effectively full employment in the South and Southwest of the country, while the East and parts of the Northwest suffer from double-digit jobless rates.
(MICHAEL DALDER/REUTERS)

German job juggernaut starts to wobble

Germany’s labour market is simultaneously striding forward and stagnating. The apparent paradox springs from one positive trend, migrants and women joining the labour force, and two deep-rooted structural problems, a skills mismatch and regional inflexibility. Unfortunately, the government has embarked on a reregulation of the labour market that is likely to worsen the problems.