For a long time, election campaigns in Germany were associated with parties wanting to do something about unemployment in Germany. Now the debate is different. “The Great Unemployment” is the name of Sebastian Dettmer’s book, which deals with the question of why a shrinking population is endangering our prosperity and what can be done about it.
The head of the Stepstone job platform has long seen unemployment as a much greater threat to our prosperity than unemployment. Dettmers focuses on economic growth as a key factor for prosperity. This is probably why he describes in detail four different growth stories from the USA, China, Great Britain and Germany. And therein lies a strength of the book.
First there is China, the country whose population has grown from 400 million (1900) to more than 1.4 billion people within 120 years. And meanwhile every fourth company of the 500 companies with the highest turnover in the world comes from the People’s Republic.
Then there is the USA, the (still) largest economic power in the world, whose population, according to Dettmers, benefits from “the belief in advancement and progress”. This belief is an important aspect of society and has helped ensure that the per capita productivity of 60,000 US dollars is by far the highest in the world.
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Great Britain’s growth can be traced back to its pioneering role during industrialization over the years. Since the mid-1980s, London has also been the most important financial center in Europe.
Meanwhile, the successful German companies from the automotive industry, mechanical engineering, chemicals and technology ensure that the German share in world trade is seven percent, even though only one percent of the world’s population is German.
Sebastian Dettmers: The great unemployment.
Financial book publisher
Munich 2022
258 pages
25 euros
What all countries have in common is the problem of stagnant population growth, even a declining population. And because the prosperity of our society is based above all on economic growth, new solutions are needed, writes Dettmers. Until now, economic growth has depended heavily on a growing population.
When Dettmers tells the story of the economic upturn in the four countries, one does not feel overwhelmed with data, although there are many figures to read. But each of them serves its purpose. It is limited to the most important epochs and historical events, but nevertheless draws a comprehensive picture of the development of prosperity.
How Dettmers wants to save prosperity
Three points are particularly important to him. First, migration: He sees it as a great opportunity for countries in Europe, because “most people migrate to work”. The examples of the USA and Canada should serve as a model because they are already specifically looking for skilled workers – in contrast to Germany and the rest of Europe. This sometimes brought about a boom in the start-up scene in the USA. Not only recently, every second start-up valued at more than one billion dollars was founded by people from immigrant families.
Secondly, Dettmers mentions investments in innovations. Thirdly, improved and fairer educational opportunities. This is less new. However, Dettmers also makes it clear how important it is to automate work processes with little added value. In his opinion, a minimum wage of 20 euros should provide the necessary incentives for companies. Trade unions would certainly argue differently here.
The CEO of Stepstone also sees new opportunities in the declining population. Above all, the creation of equal opportunities can now succeed.
It is not surprising that Dettmers criticizes the lack of flexibility in the German labor market. For him, there are not enough incentives for employees to change jobs and resign themselves. And yet, like Dettmers, one can ask where Germany would be if we all did exactly the job that suits us and our skills.
“A revolution in the mind” is needed to counteract unemployment. To break up outdated structures, advance digitization and, above all, to increase productivity.
What is missing from the book? In some places, perhaps the objective view of the shortage of skilled workers. Dettmers’ company earns its money from unemployment and a volatile labor market. That prosperity should be secured by striving for constant growth is also a very liberal view of things. And Stepstone should be interested in the economy growing and companies looking for workers.
But the problem of unemployment is independent of that, Dettmers deals aggressively with his background – and therefore knows what he is talking about. In that respect it is worth reading. Not only because it is becoming clear in which direction the labor market is developing and what challenges that entails, but also because the Stepstone boss’s approaches are well-founded and should be understood as an appeal to politics.
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