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.
Matthias Diermeier/ Jan Felix Engler / Holger Schäfer IW-Trends No. 1 23. May 2023
Too Much or Too Little Reform?: Public Discussion of the Revised Unemployment Benefit
Under its new name, Citizens' Benefit (Bürgergeld), Germany’s reformed unemployment benefit was supposed to put basic benefits for job-seekers on a new footing and fulfil the political promise to "overcome" its controversial predecessor known, after its original sponsor’s final proposal, as ‘Hartz IV’.
Matthias Diermeier/ Jan Felix Engler / Holger Schäfer IW
Immigration from Latin America: Successes and potential for securing skilled workers
Against the background of the baby boomers leaving the labour market, Germany will be increasingly dependent on skilled workers from abroad in the coming years in order to secure growth and prosperity.
Christian Kestermann / Hagen Lesch / Oliver Stettes IW-Trends No. 4 29. December 2022
Works Council Elections 2022: Results of the IW Works Council Election Survey
Works councils receive strong backing from the workforces they represent. Nevertheless, the drop in turnout reported in the IW Works Council Election Survey 2022 suggests that this support is declining.
Christian Kestermann / Hagen Lesch / Oliver Stettes IW
Wido Geis-Thöne IW-Report No. 62 25. November 2022
Parental contributions for all-day care for primary school children
The organisation of all-day care for primary school children varies greatly from region to region in Germany. In most of the eastern German states it takes place mainly in after-school care centres, which are part of the child and youth welfare services, ...
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.
Too Much or Too Little Reform?:
Public Discussion of the Revised Unemployment Benefit
Matthias Diermeier/ Jan Felix Engler / Holger Schäfer
Under its new name, Citizens' Benefit (Bürgergeld), Germany’s reformed unemployment benefit was supposed to put basic benefits for job-seekers on a new footing and fulfil the political promise to "overcome" its controversial predecessor known, after its original sponsor’s final proposal, as ‘Hartz IV’.
Matthias Diermeier/ Jan Felix Engler / Holger Schäfer
IW
Immigration from Latin America:
Successes and potential for securing skilled workers
Wido Geis-Thöne
Against the background of the baby boomers leaving the labour market, Germany will be increasingly dependent on skilled workers from abroad in the coming years in order to secure growth and prosperity.
Immigration from Southeast Asia:
Success and potential for securing skilled workers
Wido Geis-Thöne
In the coming years, Germany will be increasingly dependent on skilled workers from abroad in order to avoid that gaps in the labour market caused by the retirement of the baby boomers will jeopardise growth and prosperity.
Immigration from North Africa:
Initial successes and further potential for securing skilled labor
Wido Geis-Thöne
With the baby boomers retiring from the labour market, Germany will be increasingly dependent on skilled workers from abroad in the coming years in order to avoid massive bottlenecks in the labour market and to secure growth and prosperity.
Educational attainment of the population in a European comparison
Wido Geis-Thöne
With the increasing shortage of skilled labour against the backdrop of demographic change and the changing demands on employees in the context of digitalisation, decarbonisation and de-globalisation, it is becoming increasingly important for Germany and Europe that the working population achieves the highest possible level of qualification.
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) 
