Economics
Virus Is Cracking Germany’s Defense Against Jobless Surge
- Unemployment rose 373,000 in April despite furlough plan
- As many as 29,000 German firms face bankruptcy this year
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Two months after Germany’s economy minister vowed to do everything so “no job” would be lost to the pandemic, unemployment has already risen more than during the entire 2008/2009 financial crisis.
The emerging strains in Europe’s largest labor market show that even countries with well-established safety nets struggle to shield workers. State-wage support couldn’t prevent a jump in unemployment of 373,000 in April. And while a large part of that can be explained by people registering as jobless instead of entering training programs, economists are worrying about more trouble ahead.