Director for labor market policy at the Institute for the Study of Labor (IZA) DW-TV: Well it looks like the US "hire-and-fire principle" has finally crossed the Atlantic and reached the German job market. Let’s find out. I'm joined by Hilmar Schneider, director for labor market policy at the Institute for the Study of Labor. So, what do you say? Are short-term contracts just a trend or are they here to stay? Hilmar Schneider: Well, they are likely to stay, but still it's not the hire-and-fire labor market like in the US. We still have a strong employment protection in Germany, but this is the reason why some kind of replacement instruments get stronger and stronger. That means since during the labor market reforms between 2003 and 2005 these instruments were introduced, firms are now heavily making use of it. Since these are instruments that allow firms to circumvent the strong employment protection. But once you get across the hurdle, you get a unlimited contract, then you're subject to employment protection and then things are as they used to be. DW-TV: Right, but that's going to be more and more difficult from now on, as we've just heard. We also just learned how employees feel about having a short-term contract. But what about the employer? Are there any pitfalls for the employer, perhaps, as well? Hilmar Schneider: Well, I mean, since this liberalization of the labor market, the labor market has really been boosted in Germany. There's much more willingness to hire people that it used to be. Many jobs that were created during the last three or four years wouldn't have been created otherwise. And this is the good news, which is often neglected, unfortunately. DW-TV: Now, you said for decades obviously here in Germany, we were used to learn a profession and then work for one company throughout our entire working life. That is no longer the case. So what is your advice to the young people, to prepare themselves for the working life of tomorrow? Hilmar Schneide...