The highly educated populace of the former West Germany has long benefited from the country’s high standard of life and large social safety system. However, since reunification, Germany has had to deal with the economic issue of transitioning the former East Germany from a declining command economy based on subpar heavy industrial products to an economically developed market economy. While a few of the larger urban areas there have started to see economic recovery, the majority of East German industrial cities continue to be in a dismal state. East Germany’s unemployment rate has constantly been higher than that of the west. The German economy has placed a strong emphasis on management-labor consensus during the postwar era, which, while typically preventing labour unrest, has also created a highly restrictive labour climate where businesses are hesitant to hire more than the minimum number of people.

The two main economic sectors are manufacturing and services, with agriculture making up around 3% of employment and contributing roughly 1% of the country’s GDP. The processing of food and beverages, shipbuilding, the production of iron and steel, chemicals, machinery and machine tools, motor vehicles, electronics, textiles, and the fabrication of these items are all industries. Mines produce lignite and hard coal. Overall, potatoes, wheat, barley, rye, sugar beets, cabbage, fruit, and dairy products make up the bulk of Germany’s agricultural output. The production of cattle, hogs, and poultry is extensive. Germany is one of the biggest exporters in the world, with a wide range of goods including machinery, automobiles, chemicals, food, and numerous manufactured goods. Additionally, Germany imports food, chemicals, automobiles, machinery, and vehicles. France, the United States, the Netherlands, Great Britain, and Italy are its top commercial partners.