The leaders of the FDP and CDU agree: there is too little work being done in Germany. The Institute for German Economic Research sees it differently.
Berlin – Do Germans really work too little? If Finance Minister Christian Lindner (FDP) and Friedrich Merz have their way, the number of hours worked by Germans per year could be higher. Both of them said this at the spring meeting of the International Monetary Fund (IMF). Politicians also agree on the reasons for this: reduced working hours, demographics and part-time work for women.
In an interview with the broadcaster
ntv,
CDU leader Merz said: “We had a recession in Germany in 2023 and were the only country to do so among the world's major industrial nations. The International Monetary Fund has just recently revised down the growth prospects [for this year] for 2024: Now we are still at 0.5 [percent]. That is practically no growth.” The German economy is too weak to generate taxes and social security contributions, said Merz.
Christian Lindner wants less bureaucracy in Germany
The problem of the German economy is not a deficit in public investment, but a deficit in the number of hours worked per year, said FDP leader Lindner on Thursday on the sidelines of the IMF's spring meeting. This is due to regulations on reducing working hours, demographics and also unwanted part-time work due to a lack of childcare options. In addition to reducing bureaucracy and tax incentives for companies to invest, Lindner also advocates for reforms in the labor market.
Study: People are working more in Germany than ever before
The statements of the politicians are contrasted by the study that has now been published by the German Institute for Economic Research (DIW). It says that despite the economic downturn, more than ever before, 55 billion hours were worked in Germany. For comparison: in 1991 this value was 52 billion hours. The previous low point was 47 billion hours in 2005. “The overall volume of work has increased primarily because more and more women are working,” the
Reuters
news agency quoted study author Mattis Beckmannshagen as saying. “However, almost half of women in Germany work part-time, although some would like to work more. Your potential for the labor market therefore remains partially unused.”
A reform of the wage tax brackets could also provide a remedy. Annika Sperling from DIW said: “In order to meet the need for skilled workers, women’s labor market potential should be better used and false incentives eliminated. Reforms of the income tax brackets and spouse splitting could help make it more worthwhile for women as second earners to extend their working hours beyond the mini-job limit. However, this also requires a fairer distribution of tasks in childcare and household work, where women currently work more unpaid hours achieve than men. Like Lindner, Sperling cites the need for daycare places as a solution and also says that the development of parental leave regulations for fathers needs to be better supported.