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

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)

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Our Experts

Dr. Christina Anger
Head of the Research Group Microdata and Method Development
Tel: +49 221 4981-718 Mail: anger@iwkoeln.de
Helena Bach
Economist for Wage Policy and Collective Bargaining
Tel: +49 221 4981-665 Mail: bach@iwkoeln.de
Alexander Burstedde
Economist for Supply of skill needs
Tel: +49 221 4981-217 Mail: burstedde@iwkoeln.de @ABurstedde
Dr. Wido Geis-Thöne
Senior Economist for Family Policy and Migration Issues
Tel: +49 221 4981-705 Mail: geis@iwkoeln.de
Dr. Andrea Hammermann
Senior Economist for Working Conditions and Human Resource Management Policies
Tel: +49 221 4981-314 Mail: hammermann@iwkoeln.de
Andrea Kurtenacker
Head of Professional Participation and Inclusion Research Unit
Tel: +49 221 4981-820 Mail: kurtenacker@iwkoeln.de
Dr. Hagen Lesch
Head of The World of Work and Collective Bargaining Policy Research Unit
Tel: +49 221 4981-778 Mail: lesch@iwkoeln.de
Prof. Dr. Axel Plünnecke
Head of Education, Innovation and Immigration Research Unit
Tel: +49 221 4981-701 Mail: pluennecke@iwkoeln.de @A_Pluennecke
Holger Schäfer
Senior Economist for Employment and Unemployment
Tel: +49 30 27877-124 Mail: Schaefer.holger@iwkoeln.de @HSchaeferIW
Christoph Schröder
Senior Researcher for Income Policy, Wages and Working Time Policy
Tel: +49 221 4981-773 Mail: schroeder.christoph@iwkoeln.de
Dr. Oliver Stettes
Head of The World of Work and Collective Bargaining Policy Research Unit
Tel: +49 221 4981-697 Mail: stettes@iwkoeln.de
Dr. Sandra Vogel
Senior Researcher for Industrial Relations
Tel: +49 221 4981-746 Mail: sandra.vogel@iwkoeln.de @San_VogelThe labor market situation of recent years shows: High employment and low unemployment are possible with the right policies and in a flourishing economy.
All news

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