Germany: Unemployment explodes due to the formation of the “Proletarian Reserve Army” made up of Ukrainians
The German unemployment figures would be extremely worrying if their basic explanation were not clear and did not have to do so much with the economic trend, but rather with the creation of a real "proletarian reserve army" made up of refugees. Ukrainians that will be very useful in containing the infamous “spiral of wage prices”, ie the attempt by German workers to save their purchasing power.
The seasonally adjusted number of unemployed in Germany rose 133,000 to 2.417 million in June 2022, compared to market forecasts of a 6,000 drop. This is the first increase in unemployment since February last year and the largest since May 2020, due to the registration of Ukrainian refugees in employment centers. Net of these influences, however, unemployment remained stable, even if the demand for new workers weakened somewhat. Meanwhile, the unemployment rate rose to 5.3% from 5%, the lowest since March 2020.
Here is the relative graph
And here is everything seen in perspective that, not considering the covid period, allows us to note how the arrival and regularization of Ukrainian workers is a boon for the German mercantilist system, otherwise forced to face the employment tension by doing the incredible: increasing salaries
So the flow of workers from Ukraine, escaping a terrible war, allows Germany to create a small, but active, proletarian reserve army, a group of reservists to draw on to prevent wages from adapting to price increases. pressing and due to external factors, as we can see from the findings made yesterday by Destatis
Obviously, the compression of the wage dynamics will see winners and losers: among the first the German industrial groups and among the second the workers who will not see their wages adjust to the devaluation. Brilliant, with a view to Berlin.
PS but has anyone wondered if the Ukrainians will want to return home after the conflict is over, or is Germany already planning to keep it going for several years, in order to transform a temporary workforce into a stable one?
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The article Germany: Unemployment explodes for the formation of the "Proletarian Reserve Army" formed by Ukrainians comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/germania-esplode-la-disoccupazione-per-la-formazione-dellesercito-proletario-di-riserva-formato-da-ucraini/ on Thu, 30 Jun 2022 12:27:56 +0000.