Catherwood LibraryILR School

German unions have been remarkably successful this year, negotiating wage increases an average of 3%. Even more remarkable is Germany's unemployment rate, which is as low as 2.3% in some regions. That rate is a marked contrast with most other European Union nations that are posting near-record unemployment numbers. Germany's success can be attributed to the European Central Bank, which has cut interest rates and worked to curb deflation. German business leaders have begun to push back against the rising labor costs, even as they face skills shortages in some industries. Pay disputes and strikes have already occurred at Germany's Amazon plants and Deutsche Lufthansa.