Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, June 17, 1993 TAG: 9306170490
SECTION: BUSINESS PAGE: B8 EDITION: METRO
SOURCE: Associated Press
DATELINE: FRANKFURT, GERMANY LENGTH: Medium
They're not alone. The European Community on Wednesday predicted sharply worsening unemployment, with the jobless rate expected to reach 12 percent in 1994, its highest level since World War II. That would leave about 18 million people without jobs.
Officials in Brussels also predicted the economy of the 12-nation bloc would shrink 0.5 percent this year, the worst performance in nearly two decades, and the German economy would shrink 2 percent.
The changes are coming as a shock in a nation known for its strong work ethic and, historically, low unemployment.
Monika S. and Rosendahl are among 2.1 million unemployed in western Germany, which had a jobless rate of 7.8 percent in May. In the struggling eastern states it's 15.1 percent, with nearly 1.1 million people out of work.
Added to that, Economics Minister Guenter Rexrodt predicts 700,000 more people will lose their jobs this year as more companies seek cheap labor in Asia and E stern Europe.
"Tell me about it," Rosendahl groaned. "I've been looking for a new job since 1991, when the company I worked for went out of business."
Rosendahl, a former U.S. Army major who left the service in 1964 to remain in Germany with his German wife, worked as an export sales manager for a printing company in Frankfurt.
He spoke with a reporter at the unemployment office, where he must show up once a month to let officials know if his status has changed.
"I try not to get frustrated, but I'm nervous and I can't sleep at night. Everybody needs to be productive," said the 62-year-old Rosendahl, who took German citizenship six years ago.
He said he used to make the German equivalent of $75,000 a year but now gets $690 a month in jobless aid. He knows his age works against him.
A more typical example is Monika S., a 48-year-old legal secretary who's been looking for a new job since February.
"It's embarrassing. I won't talk to you if you use my name," she said, then relented and said, "You can use Monika S."
She hates being on the dole, saying she's ashamed to let her neighbors know. When a reporter suggested a picture be taken, she shouted, "No, never!"
She said she has submitted 75 job applications and all answers were negative.
"Most companies are looking for someone not over 35 with 20 years' experience," Monika said, her voice filled with sarcasm. "I'm too expensive."
She said she was making about $3,900 a month as a top secretary when she was laid off by a law firm.
"Maybe I'll work as a cleaning lady. I have to do something," she said.
The economies of Belgium, France, the Netherlands and Spain also were expected to slump this year. Denmark and Italy were expected to show no growth.
The recession in Europe has been attributed to the world economic downturn and a tight money policy in Germany, which has been blamed for pushing up short-term interest rates throughout the European Community.
Germany bumped up its interest rates as a result of the expenses of unifying with eastern Germany.
The report was released just days before community leaders gather at a summit in Copenhagen, Denmark, to discuss ways to revive their economies.
by CNB