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Employment Market

Employment development (Status: 2007)

Employment development (Status: 2007)
(© Statistical State Office of the Free State of Saxony, section on occupational statistics for the Federal Republic and the states)

The transition from the unproductive employment society of the GDR to structures of a market economy, associated with the corresponding restructuring of the economy, has left deep marks on the employment structure of the Saxon Free State since 1990. The number of employed individuals decreased by approximately one third between 1989 and 1993. After a modest increase up to 1995, this figure stagnated with minor annual fluctuations.

In the years from 2001 onwards, with the exception of 2004, another severe decline set in, so that the average in 2005 showed the lowest employment figure yet for Saxony. In 2006 and 2007, however, the number of people employed rose again, and in 2007 the average was 1,945,000. This figure includes a marked shift in the type of activity. At the same time, there was a marked rise in open unemployment. The unemployment rate (the percentage of unemployed individuals) rose to 15.7% in Saxony in 1994. After a modest decline in 1995, it rose again to 18.8% in 1998. After a further decline up to 2000, the level rose to an average of 20% in 2005. In the folloowing two years, the level fell sharply and in 2007 the average level was 16.4%.

However, the unemployment rate can only partially show the actual trend. o describe the situation in the labour market, one must also consider part-time working, labour market policies and the regulations for older employees, which were particularly important in the years up to 1996. On average, around 409,700 people in Saxony were unemployed in 2007. Compared with the total available workforce the proportion of underemployed people was, at 20.8%, markedly less than the comparable figure from the previous year. The level of underemployment varies according to region.



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