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.
Working Age Populations Develop Differently in Europe
If Germany does not succeed in attracting immigrants on a large scale in the next few years, the working-age population will decline sharply. According to the European population projection EUROPOP from 2019, the number of 20–64-year-olds could be 11.2 percent lower in 2030 than in 2020, if there would be no migration. In this case, a decline of only 6.9 percent would ...
Christoph Schröder IW-Policy Paper No. 25 8. October 2021
Do we need a European minimum wage?
In many countries, a paradigm shift in minimum wage policy is discussed, or it has been implemented already. Instead of protecting employees from exploitation as a lower safety line, the minimum wage is intended to provide an adequate standard of living - if ...
The labor market situation of recent years shows: High employment and low unemployment are possible with the right policies and in a flourishing economy.
Working Age Populations Develop Differently in Europe
Wido Geis-Thöne
If Germany does not succeed in attracting immigrants on a large scale in the next few years, the working-age population will decline sharply. According to the European population projection EUROPOP from 2019, the number of 20–64-year-olds could be 11.2 percent lower in 2030 than in 2020, if there would be no migration. In this case, a decline of only 6.9 percent would be expected in the EU average, and only Lithuania would show a more negative development.
In many countries, a paradigm shift in minimum wage policy is discussed, or it has been implemented already. Instead of protecting employees from exploitation as a lower safety line, the minimum wage is intended to provide an adequate standard of living - if possible without government intervention.
Acceptance of Parliamentary Procedures in the Light of Individual Problem Perception
Matthias Diermeier / Judith Niehues
A lively democracy thrives on the struggle between different interest groups for majority opinion on specific issues. Though the institutionalised process of balancing interests and hearing opposing points of view takes time, acceptance of these parliamentary procedures is essential for the functioning of our pluralistic democracy.
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