Germany has experienced a decline in the average working hours of full-time employees, which has raised concerns among economists and business leaders.
The latest data from the Federal Statistical Office shows that the actual average for 2023 is 39.8 hours, a decrease from 40.7 hours in 2011. This decline in working hours is accompanied by an increase in part-time employment, with nearly one-third of the German workforce now engaged in part-time roles.
While the average hours worked by part-time employees have increased, the overall decline in working hours across the workforce is not compensated for. As a result, the average weekly working hours for all employees have fallen. This shift away from traditional full-time employment has significant implications for the German economy.
The reduction in working hours could worsen existing demographic challenges, according to economists. Although labor productivity per hour has increased, it is not enough to counterbalance the demographic shifts affecting the labor market. In fact, labor productivity experienced a decline in 2023, raising questions about the sustainability of the current economic model.
The rise in part-time employment may indicate a shift in employee preferences in a labor market characterized by scarcity. While part-time work can provide opportunities, it also raises concerns about the long-term viability of the workforce. Creating incentives for longer working hours, especially for women, is emphasized to ensure that the labor market remains robust and capable of meeting the demands of a changing economy.
When compared to other European countries, Germany's working hours for full-time employees are lower. Switzerland has the highest average working hours, while countries like Bulgaria, Latvia, and Romania have surpassed Germany. When considering part-time workers and the self-employed, Germany's average working hours drop even further. This suggests that Germany may need to adapt to new economic realities to remain competitive in the global market.
Chancellor Scholz acknowledges the need for increased working hours and recognizes that more can be done in terms of reform. Policymakers and business leaders will need to work together to create an environment that encourages longer working hours while also addressing the preferences of a changing workforce. The economic future of Germany is at stake as it navigates these challenges.