Welfare cuts not enough

BONN'S package of tax reform and welfare cuts can create hundreds of thousands of jobs but will not be enough to cope with imminent…

BONN'S package of tax reform and welfare cuts can create hundreds of thousands of jobs but will not be enough to cope with imminent revolutions in the labour market, the head of the German Labour Office said.

"Don't think that the Bonn employment package will allow us to rest until the year 2010," Federal Labour Office president Mr Bernhard Jagoda said.

It will not even suffice until 2000. We face two large revolutions in the labour market - biotechnology and information technology will change the world of work. We will have to accompany that with further education band retraining."

Mr Jagoda was speaking ahead "of today's release of April unemployment figures which he said last week may show a fall in the unadjusted jobless total by 160,000 to below four million. That would be the first drop in eight months.

Unions have angrily rejected the reforms, seen as a desperate bid to qualify for the single European currency. The unions balked at plans to halt pay rises and cut welfare spending.

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