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.
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.
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.
Andrea Hammermann / Jörg Schmidt / Oliver Stettes IW
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.
Annette Dietz / Andrea Hammermann / Oliver Stettes IW
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 ...
Andrea Hammermann / Judith Lehr / Alexander Burstedde IW
Research Unit: The World of Work and Collective Bargaining Policy
The labor market situation of recent years shows: High employment and low unemployment are possible with the right policies and in a flourishing economy.
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.
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.
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.
Andrea Hammermann / Jörg Schmidt / Oliver Stettes IW
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.
Matthias Diermeier / Judith Niehues in LSE-Blog IW
This website uses necessary cookies to ensure the operation of the website. An analysis of user behavior by third parties does not take place. You can find detailed information about the use of cookies in our privacy policy.
German Economic Institute (IW) 
