Foto: iStock

Labour Market

Foto: iStock

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

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.

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Authors
Content Type
Christina Anger

Dr. Christina Anger

Head of the Research Group Microdata and Method Development

Tel+49 221 4981-718

Mailanger@iwkoeln.de

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Christiane Flüter-Hoffmann

Christiane Flüter-Hoffmann

Senior Researcher for Human Resource Management Policies

Tel+49 221 4981-841

Mailflueter@iwkoeln.de

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Andrea Hammermann

Dr. Andrea Hammermann

Senior Economist for Working Conditions and Human Resource Management Policies

Tel+49 221 4981-314

Mailhammermann@iwkoeln.de

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Holger Schäfer

Holger Schäfer

Senior Economist for Employment and Unemployment

Tel+49 30 27877-124

MailSchaefer.holger@iwkoeln.de

@HSchaeferIW

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Jörg Schmidt

Dr. Jörg Schmidt

Senior Economist for Working Conditions, Employment and Unemployment

Tel+49 30 27877-133

Mailjoerg.schmidt@iwkoeln.de

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Oliver Stettes

Dr. Oliver Stettes

Head of the Research Unit Labour and Personnel Economics

Tel+49 221 4981-697

Mailstettes@iwkoeln.de

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