Germany’s employment market has proved its resilience even during periods of crisis such as the Covid-19 pandemic. Germany has one of the highest rates of employment in the European UnionEuropean UnionIn 1957, Germany was one of the six founding members of today’s EU, along with France, Italy, Belgium, the Netherlands and Luxembourg. The EU is currently made up of 27 states; the euro is the official currency in 20 of them. For Germany, European integration forms the basis for peace, security and…Read more › and one of the lowest unemployment rates. Youth unemployment is also very low. Despite restrictions caused by measures to fight the Covid-19 pandemic, unemployment in Germany in 2021 was only 5.7%. Supplementary payments to workers on reduced hours have also proved their worth. Through the “Kurzarbeitergeld” system, the state picks up a large part of salary shortfalls when employers cut workers’ hours in response to challenging economic conditions. This makes it possible for employees to keep their jobs even during a crisis, and for employers to hold onto their staff.
Well trained specialist professionals are essential to the competitiveness of the German economy. Given this importance, Germany is improving the domestic legal, financial and regulatory environment, such as by expanding whole-day childcare provision. Changes to legislation, such as a law making it easier for qualified professionals to emigrate to Germany, will also help attract skilled workers from abroad – which is important given the demographic transition underway in Germany.
