Headline unadjusted unemployment in Germany in January will top five million for the first time since reunification due to labour market reforms, German Economy Minister Wolfgang Clement was quoted as saying on Sunday. Clement told Germany's Bild am Sonntag newspaper that the so-called Hartz IV reforms, which cut benefits for the long-term unemployed, would push the total above five million.
"Unfortunately, the (unemployment) figures always rise at the start of the year because of the winter temperatures, generally by around 350,000," he said. "That means we'll be at around 4.8 million jobless."
Because of the Hartz reforms, "more than 200,000 jobless who were previously on welfare benefits without being registered at the labour office will be added to this," he said.
The total would thus exceed five million. Nevertheless, Clement's forecast was at odds with junior economy minister Bernd Pfaffenbach who said earlier this month he did not expect the total to exceed five million in January or February.
The Hartz IV reforms, viewed by many as the most radical shake-up in Germany's labour market in decades, drew large-scale protests last summer, particularly in the east of the country.
The reforms came into effect without any serious trouble at the start of the year, however, despite prior threats of mass protests.
They aim to boost employment by forcing people to take any available work while reining in social security costs. In December, seasonally adjusted unemployment rose in Germany for the 11th straight month to 4.483 million, the highest level since the end of 1997.
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