Wednesday, October 26, 2016

Minimum wage increases to 2017 – unemployment among low-skilled, grown – FAZ – Frankfurter Allgemeine Zeitung

The statutory minimum wage from € 8.50 per hour is 1. January 2017 8,84 Euro increases. The monthly earnings of workers employed in the framework of a 40-hour week at the minimum wage, increases from 1477 euros to 1536 euros.

Dietrich Creutzburg author: Dietrich Creutzburg, Economics correspondent in Berlin.

The results from a legal regulation, adopted by the Federal Cabinet on Wednesday. It implements a recommendation that had been presented in June by the minimum wage Commission, composed of trade Union and employer representatives. It is the first scheduled increase in the beginning of 2015, introduced General minimum wage.

The increase of 34 cents per hour, an increase of 4 percent. This corresponds to the average rise in wages and in de period from January 2015 to June 2016, the Commission’s recommendation is based. The Plus is, therefore, on the one hand, higher than the average General wage increase this year.

A billion more costs for the company

on the Other hand, however, the new minimum wage of 8,84 Euro until the end of 2018 to apply, then the next increase is in accordance with the law. The proposals of the Commission are for the Federal government in this respect binding, as these can not deviate from it – you could dispense with the increase.

according to the regulation, the government as a result of the current increase with a wage increase of a total of one billion euros in costs annually for the company. At the introduction of the lower limit of 8.50 Euro in 2015, they had estimated the resulting total load of around 10 billion euros a year.

In terms of the labour market, the government expects that the upcoming minimum wage increase in “no noticeable negative employment effects”, in the words of the regulation.

unemployment rate for the low-skilled rises in the West

A more sceptical view, a recent study by the Institute for labour market and occupational research (IAB) suggests, however: it shows that unemployment has risen among low-skilled, 2015 – by way of derogation from the overall favourable development. The unemployment rate of people without a vocational qualification increased according to the study, in the past year, from 19.9 to 20.3 percent, the highest level since 2010.

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in Contrast, the average unemployment rate for all qualification decreased levels of 6.8 to 6.6 percent. How much does this have to do with the minimum wage, is not quite clear. According to the Federal statistical office, the gross wages for 2015 are, on average, risen 2.7 percent, the wages for low-skilled, however, by 4.1 percent. An East-West comparison of the unemployment rates, nourishes, however, doubt on this explanation.

The increase in the unemployment rate for the low-skilled is focused on the West, in the East, they fell slightly – although the introduction of the minimum wage made the company stronger. The IAB evaluates this as proof of the importance of education. This is also to be observed in regard to the Integration of refugees: in addition to the interests of a quick placement in the work, it is important to “utilize all opportunities for training”.


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