Unemployment in Germany could top five million

Germany’s jobless figure could reach or even top the five million mark for the first time, the nation’s economics ministry said today, citing a new system for tallying the unemployed.

Ahead of the release of official numbers for January on Wednesday, the economics and labour ministry explained that an additional 200,000 to 300,000 long-term unemployed will for the first time be counted along with those who lost jobs this month.

“Through our reforms, the full truth of the German labour market will come to light,” Economics and Labour Minister Wolfgang Clement said. “In the future there will be no ’dark numbers,’ no hidden or repressed jobless.”

The ministry estimates about 350,000 people lost their jobs in January - mostly for seasonal reasons. That number, along with the long-term jobless, is expected to push the previous 4.464 million over the five million mark.

In an effort to boost the economy, Chancellor Gerhard Schroeder’s government is implementing a drive to shake up the country’s generous welfare system. In early January, a new law came into effect that cuts back jobless benefits for the long-term unemployed.

For 2004 as a whole, Germany’s jobless rate averaged 10.5 % – unchanged from the previous year.