Germany: High unemployment and pay moderation define labour market

In the first of an occasional series of articles focusing on major EU member states, European Industrial Relations Review looks at recent developments in Germany, highlighting key trends in terms of the economy, the political climate, collective bargaining, pay, working time and new legislation.

Economic developments

The German economy has been performing weakly in recent years, growing at 1.6% in 2004 after shrinking in 2003.