European Economy. Economic Papers. Germany's growth performance in the 1990's

Figure B1.4: Labour force trend in East Germany, 1989-2000
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
in Mio. pers ons
employ ees , apprentic es , c iv il s erv ants , 
s elf employ ed and unpaid f amily w orkers
c ommuters
unemploy ed
hidden labour f orc e in programmes 2)
hidden labour
f orc e in a s tric ter s ens e
migration ef f ec t 1)
dec reas e in labour f orc e partic ipation rate
hy pothetic al
"GDR-
labour f orc e
potential"3)
labour f orc e 
potential
labour f orc e
w orking in 
eas tern 
Germany
Source: IAB 10/1998
1) Migration effect: Net immigration of labour force since 1989
2) Reduction of labour force through active labour market policies
3) Hypothetical labour force potential at constant GDR participation rate

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22
0
2
4
6
8
1 0
1 2
1 4
1 9 7 0
1 9 7 2
1 9 7 4
1 9 7 6
1 9 7 8
1 9 8 0
1 9 8 2
1 9 8 4
1 9 8 6
1 9 8 8
1 9 9 0
1 9 9 2
1 9 9 4
1 9 9 6
1 9 9 8
2 0 0 0
U K
G e r m a n y
U S A
F r a n c e
I t a ly
1.2.3 Labour market developments
Unemployment has been on a rising trend in Germany over the last three decades (Figure
1.8). The labour market issue became particularly virulent after re-unification. In particular,
open unemployment of more than 20% of the labour force in the New Länder brought the
German labour market into the limelight. Box 1 deals in more detail with labour market
developments, and economic developments more generally, in the New Länder.