BERLIN, Dec 28 - German unemployment should fall below four million in the latter part of next year and remain under that level on average in 2005, Economy and Labour Minister Wolfgang Clement told a German newspaper in a report on Sunday. "In the second half of the year, perhaps around October, unemployment will fall for the first time under four million, although on average for 2004 it will be above this mark," Clement told Welt am Sonntag. Germany's unadjusted jobless total reached 4.185 million in November, a rate of 10 percent of the workforce. Reforms aimed at pressuring unemployed people to take part-time jobs or join training programmes have succeeded in reducing unemployment this year, but the figure typically rises over the winter months. Clement told parliament in October as part of the government's autumn forecasts that German unemployment was likely to average 4.36 million in 2004, or 300,000 more than predicted for this year. "We will probably only manage to drop below the four million level as an annual average in 2005," Clement said in Sunday's interview.
"Our country will appear a bit brighter next year and 2005 will be the best year for a long time," he said, repeating his forecast that economic growth next year would be 1.5 to two percent. Clement urged industry and unions to agree to more flexible labour relations. "The Dutch show us exactly what is needed to retain jobs and create new positions," he said, without elaborating. In the Netherlands' so-called "Poldermodel" of the past two decades, government and industrial partners have agreed on exercising wage restraint and increasing labour market flexibility to boost employment.//