Top politicians from Chancellor Angela Merkel's conservatives and their Free Democrat (FDP) coalition partners have agreed to extend Germany's part time work scheme to help stop job losses until the end of March 2012.
The work scheme, which has helped to protect the labour market from the full effects of the recession in Europe's biggest economy, is due to expire at the end of this year. A Labour Ministry spokesman said at the weekend the parties had agreed the deal and that Merkel's cabinet would approve the plan on Wednesday. Labour Minister Ursula von der Leyen had originally wanted the extension to last a further three months until the end of June 2012.
Unemployment fell unexpectedly in March, posting its biggest drop since June 2008. The fall was the fourth drop in a row and took the adjusted jobless rate down to 8.0 percent from 8.1 percent in February. The part time work scheme has helped companies shift over a million workers to part-time work instead of firing them.
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