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Remember that in Germany, you are legally unemployed if you earn less than 400 Euros (500-600$) per month. If you are unemployed, you don't have to pay taxes.

Remember that in Germany, you are legally unemployed if you earn less than 400 Euros (500-600$) per month. If you are unemployed, you don't have to pay taxes. This makes most employees of Starbucks, McDonalds etc. count as unemployed.

michaelchisari 16y ago
Which would mean that their unemployment rate is even lower than 6.7%, wouldn't it? I've also read that they do more accurate accounting of unemployment than the US. Some say the real unemployment rate in the U.S. is around 17%. http://www.youtube.com/watch?v=QudPK1uJii8 http://www.youtube.com/watch?v=QudPK1uJii8
Mrich30 16y ago
To the contrary, you do not count as unemployed towards the official statistics. You will get benefits in addition to your salary though. Essentially the same manipulations are done to the statistics here as in many countries, they try to remove most unemployed people from the numbers by sending them to training, minimum wage jobs (so called 1 euro jobs). This has gotten a lot worse in the past years and the social divide has become as large as in e.g. The US.
- Derbasti 16y ago
  Actually, I am not sure about the statistics. Even though 400E-jobs are considered unemployed legally, they might still include them in the statistics to make them look better.
- brazzy 16y ago
  the social divide has become as large as in e.g. The US. Not even close. Gini coefficient of Germany 2005: 0.28. The USA in 2009: 0.46 http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/index.php?template=3&radioindic=158&idDomain=3 http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/i... http://www.census.gov/newsroom/releases/archives/income_wealth/cb10-144.html http://www.census.gov/newsroom/releases/archives/income_weal...
sb 16y ago
Hm, that seems kind of strange to me--while it might legally be considered unemployed, would these employees not have health-insurance paid by their employer and receive retirement compensation?
- Derbasti 16y ago
  They do get health insurance. However, it is paid as part of the general German welfare system (hence, tax money) and not by the employer. As far as I know they get the same retirement compensation as if they were unemployed. (Not so sure, there) Social security benefits however are a rather alien concept to Germans in general. Healthcare and retirement compensation are government regulated, so individual companies do not need to provide special bonuses to make the system worthwhile.

michaelchisari 16y ago

Which would mean that their unemployment rate is even lower than 6.7%, wouldn't it? I've also read that they do more accurate accounting of unemployment than the US. Some say the real unemployment rate in the U.S. is around 17%. http://www.youtube.com/watch?v=QudPK1uJii8 http://www.youtube.com/watch?v=QudPK1uJii8

Mrich30 16y ago

To the contrary, you do not count as unemployed towards the official statistics. You will get benefits in addition to your salary though. Essentially the same manipulations are done to the statistics here as in many countries, they try to remove most unemployed people from the numbers by sending them to training, minimum wage jobs (so called 1 euro jobs). This has gotten a lot worse in the past years and the social divide has become as large as in e.g. The US.

Derbasti 16y ago
Actually, I am not sure about the statistics. Even though 400E-jobs are considered unemployed legally, they might still include them in the statistics to make them look better.
brazzy 16y ago
the social divide has become as large as in e.g. The US. Not even close. Gini coefficient of Germany 2005: 0.28. The USA in 2009: 0.46 http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/index.php?template=3&radioindic=158&idDomain=3 http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/i... http://www.census.gov/newsroom/releases/archives/income_wealth/cb10-144.html http://www.census.gov/newsroom/releases/archives/income_weal...

sb 16y ago

Hm, that seems kind of strange to me--while it might legally be considered unemployed, would these employees not have health-insurance paid by their employer and receive retirement compensation?

Derbasti 16y ago
They do get health insurance. However, it is paid as part of the general German welfare system (hence, tax money) and not by the employer. As far as I know they get the same retirement compensation as if they were unemployed. (Not so sure, there) Social security benefits however are a rather alien concept to Germans in general. Healthcare and retirement compensation are government regulated, so individual companies do not need to provide special bonuses to make the system worthwhile.