Benjamin Schmitt

The impact of the current financial crisis on the German labour market Benjamin Schmitt

Publisher Marketing: Bachelor Thesis from the year 2009 in the subject Economics - Job market economics, grade: First Class, Hull University Business School, language: English, abstract: The years since the early 1970s are unprecedented in terms of the volatility in the prices of commodities, currencies, real estate and stocks, and the frequency and severity of financial crises (Kindleberger and Aliber). Many authors have already studied about reasons of the origin of financial crises and their impact on the economy concerned, since financial crises, in particular global ones and especially the current one affect all economic factors significantly. The economic growth slows down or even turns into a recession due to decreasing investments, affected by a significantly lower liquidity of companies and investors. All these factors also affect the GDP and the labour market of the economy concerned, in this case Germany, which economy has turned into a recession in February 2009. The subject of this paper has been chosen due to the present global relevance of the impact of a financial crisis on the labour market. The topic in particular has been chosen due to the fact that it is of worldwide relevance since the outbreak of the crisis analysed occurred on an unexpected scale, more precisely the worst of its kind since the Great Depression in the 1930s. The focus of this paper lies on the analysis of the current crisis in terms of the impact on the German labour market.