GERMAN LABOUR MARKET IN TIMES OF GLOBALIZATION AND THE FUTURE OF THE WELFARE STATE

Globalization has brought benefits to the economy in many areas and has led to a clear economic recovery in some countries. However, the changed situation of the global economy has also brought many new questions for economy and politics. This scientific paper deals with the question of how the economic wonderland of the European economy and export world champion Germany has embraced the new challenges. In particular, it presents the developments and changes on the labor market and the consequences for the German social system, the welfare state. The article examines the possible reasons for the low unemployment rate. While it is standard for people in Eastern European countries to adopt a normal, that is, full-time employment contract, the situation is somewhat different in Germany. This article shows on the basis of labor market statistics that there is a high proportion of part-time work in Germany, as well as new forms of employment contracts, bogus self-employment, midi- and mini jobs with reduced contributions to social insurance and often interrupted by periods of unemployment. However, lower social security payments also lead to reduced social expenditures and burden the budget necessary for a sufficient pension insurance. Although the extension of the working time to 67 years will solve parts of the problem, it also means an intensification of the generation conflict concerning the unemployment of the young. This paper shows that global structural changes represent a challenge for economy and politics if the welfare state is to be secured.