1. Home
  2. Topics
  3. Labor and Income
Content element with id 18 Content element with id 9138

Labor and Income

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.

German Economic Institute (IW) German Economic Institute (IW)

Read the article
The Pros and Cons of Trade Union Membership
Helena Bach / Carolin Fulda / Sandra Vogel IW-Trends No. 1 12. March 2024

The Pros and Cons of Trade Union Membership

The decline in collective bargaining coverage in Germany is often attributed to the reluctance of companies to join an employers' association which negotiates collective agreements.

IW

Read the article
Analysis of the working conditions of office workers
Andrea Hammermann / Oliver Stettes IW-Report No. 62 10. December 2023

Office work in transition: Analysis of the working conditions of office workers

Office work has changed considerably over time and reflects both technical progress and the zeitgeist of the decades.

IW

Read the article
Collective bargaining autonomy in a crisis of legitimacy?
Hagen Lesch / Helena Bach / Sandra Vogel IW-Policy Paper No. 11 8. December 2023

Collective bargaining autonomy in a crisis of legitimacy?

In Germany, the employers recognised the trade unions as the appointed representatives of the employees in November 1918.

IW

Read the article
The Influence of the Minimum Wage on Collective Bargaining
Carolin Fulda / Hagen Lesch / Christoph Schröder / Sandra Vogel IW-Analyse No. 154 5. December 2023

The Influence of the Minimum Wage on Collective Bargaining

This analysis examines the connection between collective wage bargaining in Germany and the adjustments to the statutory minimum wage determined by the Minimum Wage Commission since June 2020.

IW

Our Experts

View profile
Christina Anger

Dr. Christina Anger

Head of the Research Group Microdata and Method Development

Tel: +49 221 4981-718
View profile
Helena Bach

Helena Bach

Economist for Wage Policy and Collective Bargaining

Tel: +49 221 4981-665
View profile
Wido Geis-Thöne

Dr. Wido Geis-Thöne

Senior Economist for Family Policy and Migration Issues

Tel: +49 221 4981-705
View profile
Andrea Hammermann

Dr. Andrea Hammermann

Senior Economist for Working Conditions and Human Resource Management Policies

Tel: +49 221 4981-314
View profile
Andrea Kurtenacker

Andrea Kurtenacker

Head of Professional Participation and Inclusion Research Unit

Tel: +49 221 4981-820 Andrea Kurtenacker
View profile

Dr. Hagen Lesch

Head of The World of Work and Collective Bargaining Policy Research Unit

Tel: +49 221 4981-778
View profile
Axel Plünnecke

Prof. Dr. Axel Plünnecke

Head of Education, Innovation and Immigration Research Unit

Tel: +49 221 4981-701 @A_Pluennecke
View profile
Holger Schäfer

Holger Schäfer

Senior Economist for Employment and Unemployment

Tel: +49 30 27877-124 @HSchaeferIW
View profile
Christoph Schröder

Christoph Schröder

Senior Researcher for Income Policy, Wages and Working Time Policy

Tel: +49 221 4981-773
View profile
Oliver Stettes

Dr. Oliver Stettes

Head of The World of Work and Collective Bargaining Policy Research Unit

Tel: +49 221 4981-697 Oliver Stettes
View profile
Sandra Vogel

Dr. Sandra Vogel

Senior Researcher for Industrial Relations

Tel: +49 221 4981-746 @San_Vogel
Content element with id 8793 Content element with id 9139

All news

218 results
Sort by:
Read study
The Pros and Cons of Trade Union Membership
IW-Trends No. 1 12. March 2024

The Pros and Cons of Trade Union Membership

Helena Bach / Carolin Fulda / Sandra Vogel

The decline in collective bargaining coverage in Germany is often attributed to the reluctance of companies to join an employers' association which negotiates collective agreements.

IW

Read study
The Regional Distribution of Graduates in Germany
IW-Trends No. 1 4. March 2024

The Regional Distribution of Graduates in Germany

Wido Geis-Thöne

Graduates in Germany are distributed very unevenly across the country. Taking the population aged between 35 and 44, who have generally already completed their higher education, in 2019 the highest proportions of university graduates were to be found in Berlin and the Munich regional planning area.

IW

Read study
The Regional Distribution of Low-skilled Workers in Germany
IW-Trends No. 1 4. March 2024

The Regional Distribution of Low-skilled Workers in Germany

Wido Geis-Thöne

Low-skilled workers in Germany are heavily concentrated in urban areas. In 2019, the proportion of 25- to 64-year-olds who had not completed at least two years of vocational training or higher education was almost twice as high in cities with a population of over 100,000 (20.8 per cent) as in small municipalities with fewer than 5,000 inhabitants (10.7 per cent).

IW

Read study
A Macroeconomic Analysis of Wage-Price Spirals
IW-Analyse No. 155 9. January 2024

A Macroeconomic Analysis of Wage-Price Spirals

Thomas Obst / Maximilian Stockhausen

The subject of this Analysis is the forms that wage-price spirals can take and how they influence macroeconomic stability and inflationary trends in Germany.

IW

Read study
An Analysis of the Earnings of Employees Covered and Not Covered by Collective Agreements Based on the SOEP
IW-Trends No. 4 29. December 2023

Do Companies Bound by Collective Agreements Pay Better?

Helena Bach/Andrea Hammermann

When discussing the gradual erosion of collective bargaining coverage, reference is often made to the importance of collective agreements in securing high salaries for employees.

IW

Content element with id 8880 Content element with id 9713