Hi tracy,

Err, I don't see how this relates to the topic though, but anyways my take on it.

>Walter, from what I hear, Dresden is suffering the effects of the economic crisis as are other areas. The whole of Germany is suffering from a high unemployment rate. Their system is bloated and at risk of collapsing in the longrun if things don't change. I have friends who go there every year and all of them were really depressed after their most recent visits. I have friends (Germans, not Americans) in Wuerzburg and Giebelstadt who report the same thing.

>http://www.destatis.de/indicators/e/arb210ae.htm

Germanies economic situation has been pretty concerning for quite a few years now. There seems to be a bit of improvement lately. I believe it started when the two germanies merged into one in the early nineties. Though this is an important factor, I believe it also has to do with outdated thinking of protecting the employee and the inability to create a more dynamic perception of the market. We really need to realize that having just one job in your working carreer of 40 - 45 years is pretty exceptional. Take my neighbour who is delivering mail. Since the rise of the internet the delivery of mail has dropped enormously. He is looking for something else right now, just before he will get sacked.

>Our unemployment rate was 4.6% in May 2006. Not bad at all given the extremely slow job growth for the same period.

The problem is that you can't compare the US with any other country based on the published numbers as the base population is defined differently. For example the case where if one is not actively trying to get work they are not included in the percentage, while they might receive unemployment income. IOW the definition of how the unemployment rate is calculated is different.

I think the unemployment rate up here is somewhere between 5 and 6%, but we already facing the problem that it becomes difficult to find suitable employees. Going below that point indicates other economical problems as companies try to grow, but can't find employees, that might force them to oursource.




Walter,