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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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The Influence of the Minimum Wage on Collective Bargaining
Carolin Fulda / Hagen Lesch / Christoph Schröder / Sandra Vogel IW-Analyse No. 154 5. December 2023

The Influence of the Minimum Wage on Collective Bargaining

This analysis examines the connection between collective wage bargaining in Germany and the adjustments to the statutory minimum wage determined by the Minimum Wage Commission since June 2020.

IW

Read the article
Unkenntliche junge Frau, die auf ihrem Laptop tippt.
Mareike Decker / Carolin Fulda / Maisun Lange IW-Trends No. 4 24. November 2023

Working with Long COVID: Impacts and Options for Work Arrangements

A SARS-CoV-2 infection can have long-term health consequences, a phenomenon commonly known as Long COVID, which often affect individuals of working age.

IW

Read the article
An Analysis of Employment Effects
Andrea Hammermann /Roschan Monsef / Oliver Stettes IW-Report No. 55 20. October 2023

KI and the Labor Market: An Analysis of Employment Effects

It has been about ten years since Frey and Osborne's study on the automation risks of occupations in the USA fuelled the debate on the end of work due to digitalisation worldwide. Since then, numerous scientific studies have been published to examine the ...

IW

Read the article
Do the Employees Affected by Digitisation Change Establishments More Frequently or Do They Become Unemployed More Often?
Stefanie Seele / Oliver Stettes IW-Trends No. 4 20. October 2023

Do the Employees Affected by Digitisation Change Establishments More Frequently or Do They Become Unemployed More Often?

Concerns that the increasing use of technology in routine occupations could lead to job losses seem to have so far proved unfounded.

IW

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Christina Anger

Dr. Christina Anger

Head of the Research Group Microdata and Method Development

Tel: +49 221 4981-718
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Helena Bach

Helena Bach

Economist for Wage Policy and Collective Bargaining

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Alexander Burstedde

Alexander Burstedde

Economist for Supply of skill needs

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Hagen Lesch

Dr. Hagen Lesch

Head of The World of Work and Collective Bargaining Policy Research Unit

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Head of Education, Innovation and Immigration Research Unit

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Holger Schäfer

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Christoph Schröder

Christoph Schröder

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Oliver Stettes

Dr. Oliver Stettes

Head of The World of Work and Collective Bargaining Policy Research Unit

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Sandra Vogel

Dr. Sandra Vogel

Senior Researcher for Industrial Relations

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211 results
Read study
The Influence of the Minimum Wage on Collective Bargaining
IW-Analyse No. 154 5. December 2023

The Influence of the Minimum Wage on Collective Bargaining

Carolin Fulda / Hagen Lesch / Christoph Schröder / Sandra Vogel

This analysis examines the connection between collective wage bargaining in Germany and the adjustments to the statutory minimum wage determined by the Minimum Wage Commission since June 2020.

IW

Read study
Impacts and Options for Work Arrangements
IW-Trends No. 4 24. November 2023

Working with Long COVID: Impacts and Options for Work Arrangements

Mareike Decker / Carolin Fulda / Maisun Lange

A SARS-CoV-2 infection can have long-term health consequences, a phenomenon commonly known as Long COVID, which often affect individuals of working age.

IW

Read study
An Analysis of Employment Effects
IW-Report No. 55 20. October 2023

KI and the Labor Market: An Analysis of Employment Effects

Andrea Hammermann /Roschan Monsef / Oliver Stettes

It has been about ten years since Frey and Osborne's study on the automation risks of occupations in the USA fuelled the debate on the end of work due to digitalisation worldwide. Since then, numerous scientific studies have been published to examine the employment effects of technology such as robotics.

IW

Read study
Do the Employees Affected by Digitisation Change Establishments More Frequently or Do They Become Unemployed More Often?
IW-Trends No. 4 20. October 2023

Do the Employees Affected by Digitisation Change Establishments More Frequently or Do They Become Unemployed More Often?

Stefanie Seele / Oliver Stettes

Concerns that the increasing use of technology in routine occupations could lead to job losses seem to have so far proved unfounded.

IW

Read study
Record immigration not only due to flight from Ukraine
IW-Report No. 42 12. September 2023

Record immigration not only due to flight from Ukraine

Wido Geis-Thöne

In 2022, more people immigrated to Germany than ever before in the history of the Federal Republic. Around 1.46 million more people moved here than left the country, which is more than a quarter more than the previous record of 1.14 million from 2015.

IW

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