II‑ Economic Context
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Satisfactory overall economic
performance
•
Guest workers
•
East grew rapidly in early 1990s
•
Unemployment
•
Fewer employees working over 40 hours
than any country in course
•
High wages but not high unit labor costs
Guest workers
Began to import guest workers in 1960s due to labor shortages
Turks and former Yugoslavs largest groups
East grew rapidly in early 1990s
Since 1997 east has grown most slowly than west
Wages 75% western level and productivity only 2/3
$70 billion in annual transfers from west to east
Unemployment
2004 10.6%
Early 2005 went above 12% (highest since the great depression) and October 2005 11.6%
High wages but not high unit labor costs
High productivity