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| It can be a long wait for jobs at Germany's
unemployment centres |
Germany's unemployment figure rose above the psychologically important
level of five million last month.
On Wednesday, the German Federal Labour Agency said the jobless total
had reached 5.037 million in January, which takes the jobless rate to
12.1%.
"Yes, we have effectively more than five million people unemployed," a
government minister said earlier on ZDF public television.
Unemployment has not been this high in Germany since the 1930s.
Changes to the way the statistics are compiled partly explain the jump
of 572,900 in the numbers.
But the figures are embarrassing for the government.
"With the figures apparently the worst we've seen in the post-war
period, these numbers are very charged politically," said Christian
Jasperneite, an economist with MM Warburg.
"They could well put an end to the recent
renaissance we've seen by the SPD in the polls, and with state
elections due in Schleswig-Holstein and North Rhine-Westphalia, they may
have an adverse effect
on the government's chances there."
The opposition also made political capital from the figures. It said
there are a further 1.5 million-2 million people on subsidised employment
schemes who are, in fact, looking for real jobs.
It added that government reforms, including unpopular benefit cuts, do
not go far enough.
Under the government's controversial "Hartz IV" reforms, which came
into effect at the beginning of the year, both those on unemployment
benefits and welfare support and those who are long-term unemployed are
officially classified as looking for work.
The bad winter weather also took its toll, as key sectors such as the
construction sector laid off workers.
Adjusted for the seasonal factors, the German jobless total rose by
227,000 in January from December.
(BBC) | 
Updated: 2005-02-03 09:41