Economics
Germany at a Historic High in Labor Force Participation
Finance Minister Lindner criticizes German work ethic despite record working hours in 2023 – study sees potential for more.
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In Germany, more work is being done than ever before despite economic uncertainties. This is evident from a current study by the German Institute for Economic Research (DIW). The study indicates that in 2023, employees subject to social insurance contributions have worked a total of approximately 55 billion hours – a record since reunification.
This increase in total work volume is, according to study author Mattis Beckmannshagen, primarily due to the rising employment rate among women. Despite this positive trend, nearly half of the employed women in Germany work part-time, often against their actual desire for more working hours. This results in Germany having a relatively low average working time of 34.7 hours per week in comparison to Europe.
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The study also shows that the traditional model of the single-earner household is increasingly shifting towards the dual-earner household model, with an increase in female labor force participation by 16 percentage points since 1991. However, women still spend significantly more time on childcare and housework than men, affecting the time spent on gainful employment.
Against this backdrop, Finance Minister Christian Lindner calls for a revaluation of the work attitude in Germany to boost economic growth. The DIW study recommends better utilizing the labor market potential of women through reforms such as adjusting the wage tax classes and the joint spousal income splitting. Additional measures, such as more daycare spots and improved parental leave regulations for fathers, could provide support here.
The approach of the DIW aims to promote the labor market integration of women while simultaneously achieving a fairer distribution of care work between the genders. This would not only lead to higher labor productivity but also strengthen the economic resilience of Germany.