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Germany can create four million new jobs

Frank-Walter Steinmeier, the Social Democratic Party’s chancellor candidate, announced last week a plan to create full employment in Germany by 2020. Rejecting criticism he’s being unrealistic, he argues his political opponents offer no alternative.

Germany can create four million new jobs
Photo: DPA

We were making progress – in September 2008, unemployment numbers were down by nearly two million when compared to the record high back in 2005. But the crisis has set us back – 3.4 million people are unemployed in Germany. They’re looking for a job. They’re looking for affirmation and recognition from their efforts. They want to be responsible for their own life with a job and an income. Work offers dignity. They don’t want to have to rely on government handouts. Unemployment takes away the qualifications workers have earned. Unemployment demoralizes. Unemployment destroys families.

But we can’t give in to unemployment. We have to fight it – using the right policies, with the right public stimulus and by using our combined strength. Smart crisis management is vital. But we also have to escape all the rhetoric. We have to take a fresh perspective and look forward.

A week ago I presented my “Plan for Germany” – with an ambitious goal: full-employment by 2020. Since then, our country has been discussing my proposal and the jobs of the future. Where will the new jobs come from in the next decade? That is the key question for our society’s future and the fact that the wall of silence is broken is an early victory.

As expected, the reaction was mixed. Many are intrigued and some are even impressed. But others are more reserved and critical. They agree with my goals but doubt whether my ideas for new jobs – with a focus on resource-conserving, energy-saving technologies as well as new materials, products and processes, and specialisation in product-related services – are realistic.

The political opposition refuses to join the battle against unemployment. They have no concepts, no answers. Last week I was on a tour of Germany to see for myself how we can create four million new jobs. The Ruhr Valley is a good example. No other city has had to remake itself as radically as Dortmund. Some 70,000 new jobs in 10 years – that’s the goal. There are already 38,000 new jobs. Dortmund hasn’t yet crossed the finish line but it’s going in the right direction. And what’s true for Dortmund is true for Germany.

When I talk about four million new jobs, it isn’t an empty promise. I don’t think the government can create these new jobs. But we can reach four million new jobs by 2020 if we create the right conditions. So I took a hard look at where, in the next decade, markets for new products and services will arise and what kind of shape German companies are in as they approach the starting line.

Germany is already ahead when it comes to green technologies. In the next decade, companies around the world will try to use energy and raw materials more efficiently – because the global population is growing and because the climate is already changing. And because it saves money. This is creating demand for a whole raft of new, energy-saving technologies for transportation, buildings and households as well as industrial production and environmentally-friendly energy generation. By 2020, the global market for green technologies will double. This could mean two million new jobs for Germany. Studies back this up.

A strong production base in Germany is also good for the services sector. Two industries affect the development of services in particular: health care and the creative sector. Everyone knows Germany is getting older. And the number of care personnel already lags demand. Person-to-person services will grow. And the companies in the pharmaceutical, biological and medical equipment sectors are already preparing for a shift towards greyer demographics. Growth markets aren’t just at home – and German companies lead abroad. There are also new treatment models, health care IT and health care software. Studies from the Institute for Work and Technology as well as nearly all major consultancies show that at least one million new jobs could be created in health care by 2020. This isn’t a dream – in the last 15 years, one million new jobs have been created here.

Four million new jobs by 2020 – by exploiting the growth opportunities explained here, it’s realistic. A look back also confirms this – given the right conditions, strong job growth is possible within just a few years. In the boom years of 2005 to 2008, 1.6 million new jobs were created in Germany; unemployment fell by a third to 3.3 million.

But how can politicians clear the way for the jobs of the future? The most important thing is ensuring a good education for everyone. That is the forerunner of not only a fair social policy but also a successful economy. Without a massive education push that includes new approaches for schools in difficult neighbourhoods we face a predicament – high unemployment on the one hand and a lack of qualified employees on the other.

By the middle of the next decade, we will be short one million university graduates and up to 500,000 highly qualified workers. But more and better education costs money. We have to significantly increase our investments in education in the coming years. To finance this, top earners should make a contribution to show their solidarity. This will increase the quality of education and training in our country.

While travelling through Germany, I met people who work in companies, research institutes and associations that are striving to create the jobs of tomorrow. In Jena, in Ulm, in Braunschweig and in Chemnitz. Or even in Dortmund – it doesn’t matter where, it’s possible anywhere. Because these individuals don’t back down. They’re inspired by their ideas. They prove to me that we can achieve ambitious goals in Germany. That full employment is possible. We can’t give up on that goal – especially not now!

Frank-Walter Steinmeier is Germany’s foreign minister and the Social Democratic Party’s candidate to become chancellor in this September’s general election. Translation by The Local.

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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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