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How is the German labor market impacted in a recession?
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In a recession, we usually see decreased consumer demand, which in turn reduces employer's profits and hence it results in mass layoffs. I assume such mass layoffs are possible in countries like the U.S., where employment is at-will.
In Germany and other countries where it is harder to fire employees, is the labor market less affected in a recession? In the past few recessions, did unemployment go up by a higher magnitude in Germany, compared to the U.S.?
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