5 Employment Trends In Germany

Employment & Business Trends in Germany

Deemed as one of the most stable countries in the world, Germany comes with multiple benefits for any company that wants to start setting up a business and employment of its workforce there.


Firstly, they are one of the most innovative countries in the world, ranking 4th based on the Bloomberg Innovation Index in 2021. Doing business in a country with a high innovation index lets companies use advanced technology to aid their ventures and possibly be the leading figures in advancing said technologies.


Second, with an excellent ranking in the innovation factor, they are also a lead figure globally for the startup ecosystem. According to StartupBlink, they rank in the top 6 in the world, giving a sense that the country focuses on creating more jobs and the local level of economic development.


Third, their considerable population contributes to about 18% of the EU’s total population. Therefore, they have a large consumer market that would benefit any business incredibly. 


Lastly, not only their population but also their geological position aids them to be a good contender for starting a business. Located at the center of Europe, any trading necessary for your business would be more manageable. Furthermore, with the country’s wide connection to different countries and as a member of the European Union, companies can have a wide array of possible networks.

The Act on Proof is a directive that pertains to the transparency via documents of working conditions in a company. The paper is given to the workers as proof that they fully understand the circumstances. 


The current reform calls on the additional list of indicated essentials, including breaks, overtime details, unfair dismissal filling, duration of probationary periods, and much more. 


The draft would add additional paperwork, and delays in processes may incur to every company in Germany if implemented. 

The country’s minimum wage will increase to an hourly rate of €12 from €9.82. The increase will start on October 1, 2022. The growth has been implemented due to the cost of commodities


Furthermore, Labour Minister Hubertus stated that this is to combat poverty and increase the purchasing power of low-wage workers.

The mini-job threshold of €450 will increase to €520. Mini-jobs are occupations that have low salaries. Mini-jobs are not liable to taxes or social security. Therefore they are great for students or anyone who wants a sideline from their current job. 


However, individuals not in these categories have also taken part in the mini-job system, such as people with insufficient credentials. Through the years, more people have opted for the setup, which resulted in seven million citizens working in mini-jobs.


The consequence, however, became noticeable due to the coronavirus, which led to thousands of mini-jobbers losing their work. Without contributions to social security, they lack the requirements for unemployment benefits and pensions. 


Therefore, the threshold increase will combat the problem of inadequate funds for any mini-jobbers. Discussions have occurred on changing the whole system to discourage anyone from substituting mini-jobs for regular jobs.


The possible changes in the system of mini-jobs will change the dynamic of companies in Germany. Therefore, companies that want to opt for workers as mini-jobbers should thoroughly research their pros and cons.

According to the Federal Statistical Office, the increase in the workforce exceeded the pre-pandemic level in 2020.


The increase in the employment rate positively affects the country as a whole. It will increase Germany’s growth and consumer spending, boosting company gain for all sectors.

For decades, the service sector of Germany has always been the most considerable portion of the country’s economic growth. This notion is still factual to this day. 


Industries included in the service sector includes finance, tourism, education, health, and many more. Furthermore, the IT service sector has seen stable growth from 2005 to today, generating up to 41.4 billion euros in 2021 alone.

With one of the largest economies in the world, Germany boasts a myriad of benefits in starting a company there. The current employment climate is in a stable state with possible changes in the future. However, the changes iterated above still show the positive stability that the country has to offer.

Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.

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Global People aims to assist its clients to fully focus on their development and success in their target destinations without having to worry about the regulation and compliance involved in the employment of their local and expat employees.


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