| Year | Unemployment rate (%) |
|---|---|
| 2016 | 4.1% |
| 2017 | 3.8% |
| 2018 | 3.4% |
| 2019 | 3.2% |
| 2020 | 3.8% |
| 2021 | 3.6% |
| 2022 | 3.1% |
| 2023 | 3.0% |
| 2024 | 3.3% |
| 2025 | 3.5% |
| 2026 (forecast) | 2.5% |
Examine two likely effects of the forecast change in the rate of unemployment between 2025 and 2026 on firms in Germany. Refer to Figure 1 in your answer.
