Employment : Germany

Between 1950 and September 1992, the number of gainfully employed persons in the old federal states increased from 21.2 million to 29.5 million. It thereafter declined, reaching 28.1 million at the end of 1996. In the new federal states, employment declined by about 3.6 million to 6.2 million between 1989 and 1993 as a result of the crisis precipitated by the transition to the social market economy. This drastic reduction in the number of jobs came to a halt at the beginning of 1 994. By the end of 1 995 the number of gainfully employed persons had risen slightly to 6.4 million, but one year later it had dropped again to just over 6.2 million.

From about 1960 onward, the increase in the work force in the old federal states was due mainly to the ever increasing numbers of foreign workers. In 1965 the number of foreign workers rose to one million, and in 1973 to 2.6 million, setting an initial record for employment of foreigners. After that, the influx of foreign workers - except for those from the member states of the European Community - was slowed. By 1985, the number of foreign workers had dropped below 1.6 million. Toward the end of the 1980s and during the 1990s, due in no small part to the strong influx of asylum-seekers, the number of foreign workers again increased substantially, namely to about 2.1 million in 1996. The largest contingent of registered foreign workers are the Turks, followed by workers from former Yugoslavia, Italy and Greece. In the new federal states, employment of foreigners still plays a relatively minor role in the economy.