Germans cut working hours despite labor shortage

2023-11-10 09:00:51, Kosova & Bota CNA

Germans cut working hours despite labor shortage

Illustrative photo

According to a study by the German Institute of Economics, ifo individual reduction of working hours further aggravates the problem of labor shortage. It is true that the number of employees has increased from 40 to 45 million people since 1991, according to ifo president Clemens Fuest. But the number of working hours in this time frame has remained the same. "45 million people work as much as 40 million people before."

Big drop for 2030

According to data from the German Institute for Labor Market and Occupational Research, IAB, nearly half of German companies in the first six months of last year could not fill jobs with qualified workers. Only in professions related to mathematics, informatics, natural sciences and technology, about 300,000 workers are missing in Germany, according to the autumn report of the German Institute of Economics, IW.

Economics expert, Clemens Fuest

But the labor shortage involves all economic sectors. "The big fall has not yet come," according to ifo head Fuest. The problem will be more acute when those born in 1963/1964 retire around 2023. Tabea Bucher-Koenen, professor at the University of Mannheim and head of the Leibniz Center for European Economic Studies, says that between 2025 and 2035 13.5 million people will also retire. Although they are financially well off, there will still be a significant reduction in consumption.

Labor shortages cover all economic sectors

Increased employment and immigration needed

Although the coalition government will keep the pension level at 48% of the average income, employees must either work longer or pay higher pension contributions, Bucher-Koenen points out. This is possible because today's elderly are healthier and live an average of 6 years longer than their parents' generation, says Karin Haist, demography expert at the Körber Foundation. Economic expert Fuest to increase the number of the labor force, proposes an increase in the employment quota and greater immigration of the labor force from abroad. In order to increase the employment quota, "we must not keep people away from work", said Fuest, taking as an example the social money given to the citizen and the weight of taxes and social contributions. A better kindergarten network could bring more women into the world of work.

Even on immigration, there is still a lot to do. Of the refugees who arrived in 2015, approximately half work, explains the ofo institute's representative, Yvonne Giesing. Only about 20% of Ukrainian refugees work. "The biggest obstacle is the language", according to the expert. Added to this is the German bureaucracy, which inhibits the arrival of the workforce./ DW