I don;t doubt it, but I worked with managers for a short while in an East German hospital. They said all management had to be recruited from the West because of a lack of innovation in the local workforce. Soft skills were lacking.
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Of course new skills had to be acquired as the economic system and the requirements in terms of soft skills was significantly different. But that's still a far cry from poor skills. And it's been almost 30 years since reunification so the workforce now does have the soft skills.
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Still the low wage model of recovery remains. and in a very mobile Europe this leaves the region trapped.
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