emerged as a major political problem for Schroeder, two years after he launched a package of limited labor-market reforms and welfare-state trims. His so-called "Agenda 2010" hasn't strengthened growth enough to prevent unemployment rising to a post-World War II record, with 5.2 million people out of work _ a jobless rate of 12.6 percent. Later Thursday, Schroeder was to meet opposition leaders for a much-awaited summit to seek ways of tackling the record jobless rate _ a result partly of a benefit revamp, aimed at reducing unemployment in the long term, that obliged many social welfare recipients to register as unemployed. "There is no question that the figures with which we are confronted must depress us all," Schroeder said. With an important state election in May and national elections on the horizon next year, both sides are eager for some kind of deal when they meet after months trading barbs over Germany's economic problems. Opposition conservatives control the upper house of parliament _ giving them the power to block many of Schroeder's plans. Over the past two years, Schroeder has frequently been forced into time-consuming negotiations and compromises. In his speech, Schroeder rejected opposition calls to review laws offering German workers protection from dismissal that the government already relaxed slightly. Schroeder said companies had failed to hire older workers despite the fact that "there is practically no protection from dismissal for those over 50." Rising unemployment helped push Schroeder's Social Democrats to an unexpectedly poor performance in a state election last month. The party faces a struggle to retain control of North Rhine-Westphalia, Germany's most populous state, in May. However, public disagreements about how to reform social programs also have done little for the opposition's popularity over the past year.
