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Economy, Not Politics, Creates Jobs: German Official

Amid all the turmoil in Europe, Germany is often viewed as something of a "good student," but it still has its challenges, the nation's Labor Minister Ursula Van Der Leyen said.

Caspar Benson | Getty Images

"We have a low unemployment rate, and it is getting lower," Van Der Leyen said at a meeting of G20 labor ministers in Paris.

Germany's unemployment rate fell to 7 percent in August, its 26th straight month of decline.

However, it may have a bigger challenge — an aging population.

"In the long term, we'll have a demographic challenge," Van Der Leyen said, adding that the country needs to invest in ways to harvest older employees' knowledge.

Indeed, Germany faces another problem about training.

"We have a skills problem for youth, she said. "We have one million jobs open ... (but) a lot of them don't find jobs because they don't have the skills."

Germany has indeed benefited from a strong currency and a high demand from Asia in the years following the 2008 crisis.

"There are worries concerning Europe now ... so we are fighting to keep a strong euro," she said.

But in the end, "it's not politics that create jobs, but the economy," she said.

Still, Van Der Leyen remains optimistic though about German jobs.

"German has a very robust labor market," she said.

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