In crisis-hit Europe, only in Germany do the labour statistics paint a rosy picture of decreasing unemployment. EPTV went to Berlin to look beyond appearances.

Reporter: Jobless in Germany

We went to Berlin to find out more  about the German employment miracle.

It seems that all of Europe is suffering  from the crisis, but is that so?

No. The EU's biggest economy  is also its strongest and healthiest

and the only one to reduce  unemployment, despite the crisis.

Before the Bundestag, the Minister  of Labour could barely hide her pride.

Our economy is strong  and we have a robust job market.

We have the highest level  of full employment since reunification.

We have halved  the long-term unemployment rate.

The Minister's enthusiasm doesn't resonate  with people on the streets of Berlin.

we meet this 19-year-old who can find  neither a traineeship nor a decently paid job.

He talked to us  on condition of remaining anonymous.

Most jobs you get offered  are 40 hours per week.

If you get 600 or 700 euros,  you're lucky.

The national job centre sent our interviewee  to a private job agency.

but no longer appears in the official  unemployment statistics, like this woman.

No one wants to hire me  because of my age.

I was told that it was possible  but they still refused.

'You won't get a job,  even young people don't.'

As a jobseeker who is past the age of 58  and has not had a job for a year

she doesn't appear  in the official statistics either.

About ten years ago Germany reformed  its employment market with the Hartz laws.

The rate of unemployment  has been falling since then.

We asked this unionist if it really has,  or only appeared to, in the statistics.

100% of the unemployed received  the full unemployment benefit.

And now it's only 50%  of the original number.

But these people haven't gone away  nor are they working.

They get social benefits  under the Hartz IV scheme.

The Hartz reforms brought many  part-time jobs for 400 euros a month.

These workers are not covered by  pension or social security schemes

but they no longer appear  in the national unemployment statistics.

For me, this is actually  a statistical trick

to create the impression that  unemployment is not a problem here.

In reality, there is still  mass unemployment in Germany.

There's a lot of pressure  on unskilled workers

who earn little  even in regular employment.

Unlike most EU countries,  there is no minimum wage in Germany.

This is actually detrimental  to the other EU countries.

In my opinion  the financial crisis is a result

of economies like Greece, Spain  and Portugal becoming less competitive

The wage advantages  of other economies were eroded

by the low-wage strategy that Germany  has pursued since the turn of the century.

In the long run, this strategy might  come to harm the German economy.

If Germany doesn't change its economic  policy, including the labour market policy,

misery will become  more widespread in Germany.

The wages of those in the lower  30-50% of income groups will fall,

and perhaps also  in the higher income brackets.

And this means less purchasing power,  less economic development.