The major issue of the 1998 campaign was unemployment. In 1996, the unemployment rate in Germany surpassed the government's "limit" of 4 million unemployed people. Both parties blamed high labor costs, high taxes and the high welfare costs as the causes of the problem. During the campaign, Schröder used this issue against Kohl calling him 'the unemployment chancellor.' Unemployment was worst in the former East Germany. While the national rate stood at 9.4 percent, former East Germany was suffering with unemployment at 20 percent. Many in the former East Germany blamed Kohl for the slow economic recovery.