Article: Rising Unemployment Shocks East Germans, Prompts Fear of Unrest

Unemployment has suddenly skyrocketed in East Germany, shocking the newly democratic nation with a debilitating social problem neither its leaders nor its people have experience with.

The Labor Ministry has estimated that at least 100,000 East Germans have lost their jobs since December. The losses come as the country moves away from the rigid, bureaucracy-heavy communist system of the last 40 years and prepares for absorption into the free-market West German economy under monetary union scheduled to take effect July 2.

Some increase in unemployment was expected during a transition period, but officials said jobs are being lost more rapidly and on a greater scale than anticipated. As a ...

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