As of: January 21, 2024, 4:45 a.m
By: Fabian Hartmann
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A shortage of skilled workers and demographic change could soon seriously threaten the German economy.
Economics Minister Habeck proposes reforms.
Berlin – Federal Economics and Climate Minister Robert Habeck (Greens) is working on measures to counteract the labor and skilled labor shortage in Germany.
In order to achieve this, however, “several screws have to be turned,” Habeck told
Handelsblatt
.
“We have to increase the supply of workers and skilled workers,” explained the Green politician.
This is a central concern for the future of Germany as a business location.
In the eyes of many experts, the labor shortage, fueled by demographic change, will be the greatest risk to Germany's economic strength in the next few years.
Habeck is therefore planning a series of reforms for the federal government's new annual economic report.
According to the Minister of Economic Affairs, the draft went into coordination with the other ministries this week.
In total it contains six reform proposals.
In addition to creating incentives for second and low earners, they also aim to create incentives for older people and refugees.
The Minister of Economic Affairs wants to examine a permanent legal right to work from home
Among other things, Habeck wants to examine a legal right to flexible working for second earners.
This could be particularly useful for women with children.
During the corona pandemic, employers were obliged to temporarily allow employees to work from home to protect against infection.
Afterwards, Labor Minister Hubertus Heil (SPD) initiated a permanent home office requirement - but without success because the employers rejected this.
The current legal situation states that employees can express a wish to work remotely, but this can be rejected by the employer.
The draft also includes reducing “negative incentives to work”.
This should be achieved by reducing so-called transfer withdrawal rates.
This refers to the rates that are responsible for a reduction in transfer payments as income increases.
According to Habeck, additional work in the form of overtime is often no longer worthwhile.
In addition, there are poorly coordinated state benefits to citizens, such as citizen's benefit, housing benefit or child allowance.
Habeck on retirement: “The knowledge and skills of older employees are worth their weight in gold”
According to Habeck, the adjustment screws mentioned also include continuing to motivate older people to work.
The Minister of Economics is planning to create incentives for employees of retirement age in the future instead of letting them take early retirement without deductions.
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“The knowledge and skills of older employees are worth their weight in gold – for companies and for the economy,” explained Habeck.
For this reason, among other things, he proposes that the employer's share of unemployment and pension insurance be paid directly to employees after they reach the normal retirement age.
Because the deduction-free pension after a particularly large number of years in the pension insurance is a popular option for entering retirement.
In addition, the number of people considering earlier retirement has been at a high level for years.
And the fact that only a minority of the baby boomer generation can imagine working until normal retirement is likely to further fuel the departure of many older workers.
People with a migrant background should be integrated into the labor market more quickly
In addition, the Federal Minister of Economics plans to integrate people with a migration background more quickly into the German labor market.
The draft annual economic report therefore also aims to reduce bureaucratic hurdles.
This is intended to help “progress more quickly and effectively in the labor market integration of refugees”.
For example, checks on the working conditions under which refugees are employed by a company could no longer be carried out, reports the Handelsblatt.
The current legal situation requires authorities to check in certain cases whether foreign employees are not treated worse by an employer than German or EU citizens.
Only after a successful examination do they issue the work permit.
Federal Economics and Climate Minister Robert Habeck (Greens) proposes reforms to improve Germany as a business location.
© IMAGO/dts news agency
From the perspective of the Ministry of Economic Affairs, an audit is not necessary if the company is bound to a collective agreement.
In addition, bureaucracy should generally be eliminated in these examinations because the Federal Employment Agency (BA) does not have to carry out another examination after six months.
The Federal Cabinet is expected to approve the annual economic report on February 21st.
Then the Federal Minister of Economics will present it to the public.