ABSTRACT
As Germany slowly recovers from the recession of the early 1990s, economic signs indicate an upswing and most economists are generally optimistic about its sustainability. But the dark side of the picture shows a persistence of high unemployment rates, rising long-term unemployment and tremendous labour market problems in the East-full employment is far from being in sight. When faced with these divergent developments it is essential to study the causes. For political scientists it is of special importance to ask why existing policies are obviously unable to cope with the problem of rising mass unemployment in a satisfactory manner.
