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JOBS

Revved up German jobs motor only idling in some areas

The German jobs motor is turbo-charged these days but stark regional differences point up the potential and pitfalls in Europe's biggest economy.

Revved up German jobs motor only idling in some areas
Workers at a solar glass factory in Brandenburg. Photo: DPA

The town of Neubrandenburg, a two-hour drive north of Berlin in the former communist east, had an unemployment rate of 13.8 percent in November according to figures published this week, twice as high as the national average.

But Heiko Mirass, head of the local labour agency office, insists: “The time of mass unemployment (of more than 20 percent) is behind us.”

However the lower jobless rate in this city of 70,000, where a handful of medieval buildings stand in the shadows of rundown housing blocks, is not the product of a recovery but rather of its ageing and shrinking population.

In the 20 years since national reunification, the city has lost one-third of its citizens due to a falling birth-rate and an exodus to the west in search of jobs.

Many of those who remain are no longer of working age and thus no longer counted as unemployed.

There is little sign of the “jobs miracle” frequently evoked by Chancellor Angela Merkel’s government in this notch of the East German rust belt.

More than one-third of those without work are over the age of 50 and more than one-quarter are long-term unemployed.

“We are witnessing a certain fossilisation of unemployment,” with little mobility for those trapped in joblessness, Mirass said.

Nearly 700 kilometres to the south, the wealthy Munich suburb Freising seems a world away with more demand for labour than available employees.

The jobless rate was 2.3 percent in November, the lowest in the country. It has held that title for more than a decade, said Karin Weber, Mirass’ counterpart in Freising.

She said Freising’s proximity to the international airport, Munich and the city of Ingolstadt, home of automaker Audi, as well as a network of booming small- and medium-sized companies kept the want-ad pages full.

Anyone who is registered as unemployed is truly “between jobs,” says Weber. Last month 1,500 people went on the dole while 1,800 found employment.

The labour market now looks stronger than before the economic crisis, which sparked Germany’s worst post-war recession with a contraction of nearly five percent last year.

“But that does not mean we have nothing to do,” said Michael Schmidt, operations director at the labour agency.

Challenges include getting older and handicapped workers into viable employment but Schmidt said it was possible that the jobless rate could sink even lower than 2.3 percent.

In Neubrandenburg, the labour agency does what it can to get older Germans working again.

At the training centre, seated in front of a blackboard, Elke Rödel scribbles in her notebook.

At 49, she aims to become a caregiver for the elderly. “It is difficult going back to school,” she sighs, confiding that her “dream” would be a permanent work contract.

Jens Junghaeel, out of work since March, has a better chance of getting back into the labour market than Rödel.

Wearing a blue shirt and a focused expression, the young man types away at a computer in his machine-tools programming class.

“I have worked for nine years, with interruptions. But always in the west. What I want is to work here,” he said.

In the area, the unemployment rate among 15 to 25 year olds has fallen steadily and is now at about 10 percent — ” a figure they could dream about in Spain,” Mirass said, where the jobless rate is hovering around 20 percent.

AFP/hc

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WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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