Unemployment relief efforts to be scaled back, affecting over 3 million jobless individuals, according to Grimm's proposal.

The German Federal Employment Agency in Nuremberg presented new unemployment figures on Friday, revealing that the number of unemployed in Germany has risen above three million for the first time in more than ten years. This concerning development was predicted by economist Veronika Grimm, a member of the German Council of Economic Experts (SVR).

Grimm, who has been vocal about the economic challenges facing Germany, has urged measures to bolster the economy. She believes that the planned increase in the minimum wage is not a good idea in the current context, as it could potentially lead to more unemployment.

To address this issue, Grimm advocates for interventions in labor laws to increase labor market flexibility, as practiced in Denmark and other European countries. In some of these nations, unemployment insurance is robust, but dismissal protection is less stringent, allowing for a more adaptable workforce.

Moreover, Grimm suggests reducing regulation and strengthening market forces to decrease unemployment. She also supports cost-saving reforms in social security systems and considers benefit cuts in social insurance due to strained financial conditions.

Grimm has also led commissions on gas price caps, indicating her support for targeted interventions to manage economic pressures. However, she did not provide specific details about the nature of these joint debts on a European level that she mentioned ahead of the German-French ministerial council.

Despite these challenges, Grimm remains hopeful but cautious about the success of the government's economic transition, stating that it doesn't look promising at the moment. The central question now, according to Grimm, is whether the government's economic transition will succeed.

The source of the information about the unemployment figures is the dts news agency.

Unemployment relief efforts to be scaled back, affecting over 3 million jobless individuals, according to Grimm's proposal.