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Labor and Income

The labor market situation of recent years shows: High employment and low unemployment are possible with the right policies and in a flourishing economy.

About the topic

The German labor market has been in a state of flux in recent years: Due to structural change and digitization, jobs have been lost in some sectors, for example in mining or industry, but at the same time many new jobs have been created in the digital world of work. However, despite recent successes, millions of people are still looking for a job, although skilled workers are becoming scarce as a result of demographic change. Going forward, therefore, the goal remains to increase labor force participation, promote occupational mobility, make it easier for people to get into jobs, and keep the shortage of skilled workers at bay for the economy.

Meanwhile, the demands on employees are changing rapidly. Digitalization and internationalization are shaping the world of work. Aging and heterogeneous workforces pose difficult tasks for HR policy. Companies are well equipped if they succeed in balancing the different requirements.

Employees' earnings, i.e. wages and salaries, can be freely negotiated with their employers - in some cases, the leeway is limited by collective agreements. Wage policy also determines how many skilled workers employers can retain. Overall, wages have risen steadily over the past few years, which has led to an increase in prosperity.

German Economic Institute (IW) German Economic Institute (IW)

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Labour Mobility in Times of Digital and Ecological Transformation
Lennart Bolwin / Jörg Schmidt / Oliver Stettes IW-Trends No. 3 27. July 2022

Labour Mobility in Times of Digital and Ecological Transformation

Every year, on average, approximately every third job in Germany sees a change of occupant. However, the fluctuation coefficient, which describes turnover in the labour market, has fallen noticeably in the wake of the Covid 19 crisis – from 33.1 per cent in 2019 to 29.8 per cent in 2020.

IW

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The dynamics of worker transitions and their impact factors
Andrea Hammermann / Jörg Schmidt / Oliver Stettes IW-Analyse No. 149 27. July 2022

Labour turnover in Germany

Labour turnover in Germany tends to be relatively constant over time but decreases slightly in times of economic crisis, such as the Global Financial Crisis of 2008-2009 or the Covid-19 pandemic.

IW

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Businesses in the transformation process
Annette Dietz / Andrea Hammermann / Oliver Stettes IW-Report No. 33 10. June 2022

Behind the scenes of upheaval and change: Businesses in the transformation process

The pressure on companies and their employees to change and adapt is enormous against the background of megatrends such as digital and ecological change.

IW

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Fields of application and success factors
Andrea Hammermann / Judith Lehr / Alexander Burstedde IW-Report No. 28 23. May 2022

HR Analytics: Fields of application and success factors

In this study, the term HR analytics is used to describe data-based decision-making in HR, whereby the transitions from classic HR controlling to HR analytics, in which various data sources are combined to identify interdependencies and make predictions, are ...

IW

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Christina Anger

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181 results
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How well do applicants and jobs match?
IW-Report No. 47 9. September 2022

How well do applicants and jobs match?

Rabea Dellkamm / Kathrin Möckel / Holger Schäfer / Oliver Stettes

Due to data restrictions, existing empirical research currently fails to exactly determine the quality of newly established employee-employer-matches.

IW

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As a country of immigration, Germany needs a modern citizenship law
IW-Report No. 46 6. September 2022

As a country of immigration, Germany needs a modern citizenship law

Wido Geis-Thöne

It is not only in their own interest that immigrants living permanently in Germany and their descendants acquire German citizenship. It is also important for the development of society as a whole that no larger population groups who are largely excluded from political processes and public office do emerge.

IW

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Labour Mobility in Times of Digital and Ecological Transformation
IW-Trends No. 3 27. July 2022

Labour Mobility in Times of Digital and Ecological Transformation

Lennart Bolwin / Jörg Schmidt / Oliver Stettes

Every year, on average, approximately every third job in Germany sees a change of occupant. However, the fluctuation coefficient, which describes turnover in the labour market, has fallen noticeably in the wake of the Covid 19 crisis – from 33.1 per cent in 2019 to 29.8 per cent in 2020.

IW

Read study
The dynamics of worker transitions and their impact factors
IW-Analyse No. 149 27. July 2022

Labour turnover in Germany

Andrea Hammermann / Jörg Schmidt / Oliver Stettes

Labour turnover in Germany tends to be relatively constant over time but decreases slightly in times of economic crisis, such as the Global Financial Crisis of 2008-2009 or the Covid-19 pandemic.

IW

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The difficulties of universal redistribution in times of welfare chauvinism
Matthias Diermeier / Judith Niehues in LSE-Blog Contribution 17. June 2022

The difficulties of universal redistribution in times of welfare chauvinism

Previous studies have found substantial support across Europe for the creation of a universal basic income system. Yet as Matthias Diermeier and Judith Niehues explain, there is also widespread support for restricting the access of immigrants to state benefits. Drawing on new research, they assess how these two perspectives shape wider attitudes toward welfare.

IW

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