Unemployment is Europe's greatest challenge
Nuremberg, June 7, 2010 – The situation on the job market remains of the greatest concern, not only to Germans, but to Europeans in general. Compared with the previous year, the degree of concern has even risen slightly. In 8 out of the 11 countries surveyed, unemployment was the most frequently mentioned issue. Next, some way behind, come price and purchasing power development, and worries about economic stability. Although concerns about the economic climate have dropped back, nevertheless, this is still an issue which comes third on the list of European anxieties. Out of all the Europeans, Germans worry the most and although Germans are currently a little less anxious about the economic situation, the subject still comes in at No.2 on the list of major concerns.
With a rise of 9 percentage points, two thirds of Germans expressed concern about the situation on the job market in 2010. During the course of the recession, unemployment has in fact risen, although the increase is markedly lower than previously anticipated (up from 7.3% in 2008 to 7.5% in January 2010 according to the OECD). The underlying reason for the growing concern may be the result of uncertainty about future prospects, which are hard to predict. In their Spring 2009 reports, the leading economic research institutes were still expecting unemployment to rise to 5 million by the end of 2010, however, in early summer 2010, only around 3.6 million had actually registered as unemployed and in their current reports, the institutes are even reckoning on a fall in the number of unemployed.
"In 2010, unemployment is and remains the major concern of Germans. The same has been true of the past 20 years or so, with the sole exception of one year, which was 1992, when the issue of immigration and integration was preoccupying us Germans”, says Dr. Wildner, Managing Director and Vice Chairman of the GfK Association, of the findings.
After an explosive rise last year, concern about economic development dropped back again by 10 percentage points, although at 26%, it still occupies second place on the league table of German concerns.
With a fall of 5% in GDP, the German economy suffered the greatest blow of its entire existence in 2009. For 2010, the first slight signs of recovery and a rise in productivity amounting to around 1.4% are forecast.
Germans are worred about price and purchasing power development
After concerns about price and purchasing power development dropped back last year to 13% from 37% the year before, 24% of Germans once again believe there is a need to take action. While the rate of inflation averaged just 0.4% in 2009 (OECD data), a slightly rising tendency can again be observed.
Healthcare and pensions: an increasingly explosive subject
Worries about healthcare have more than doubled and at 21%, more Germans expressed concerns over healthcare in the event of illness than at any other time than since 1990. With this, the issue now stands at No.4 on the list of concerns. The need to reform the German healthcare system, the billion-euro deficits of the statutory health insurances, the first rise in contributions and the discussion of per capita flat rates have again moved center stage in the debate.
With a rise from 9% to 19%, the issue of pensions and old age provisions has become an increasingly contentious subject which now ranks fifth in the list of concerns. While in the prior year, old age pension payments still rose by almost 2.5%, this year, pensioners have had to come to terms with a zero increase.
Social security: moving into the spotlight
The raft of issues relating to social security is now ranked No.6 on the list of concerns. Compared with the previous year, the current demand for a fairer society has risen by 4 percentage points to a record 17%, with more equitable distribution of earnings a particularly frequent comment.
The subject of criminality is also once again preoccupying Germans. After a decline last year, the desire to step up crime-fighting has risen by 7 percentage points to 15% to occupy 7th place on the league table of concerns. Certainly, concern is strongly contingent on the way in which crime is reported in the media, which this year focused on crimes associated with young people, both as victims and perpetrators.
