Germany in a working time dilemma: Merz demands more hours at the desk!

Germany in a working time dilemma: Merz demands more hours at the desk!

In a current appeal, Chancellor Friedrich Merz is calling for an increase in working hours in Germany. This seems necessary because an evaluation by the German Economic Institute (IW) shows that working hours in Germany are relatively low compared to other countries. In 2023, the average working time for employees aged 15 to 64 was only 1,036 hours. For comparison: Greece recorded 1,172 hours, Poland even 1,304 hours, while New Zealand takes the lead with over 1,400 hours. The numerous part-time employment relationships in Germany also contribute to this trend, with around 30% of the workforce working part-time.

How Focus reports, Germany experienced a peak in employment with around 46 million employees in May 2024, although this number has been declining since then. Projections suggest nearly 20 million baby boomers will retire by 2036, which could pose additional challenges to the job market. This leads to the realization that the German labor market as a whole could experience negative growth if significantly more people do not work until the normal retirement age.

Decrease in working hours

A study by the German Institute for Economic Research (DIW) since reunification shows that average working hours have continuously decreased since then. Despite an increase over the last decade, many European countries have significantly increased their per capita working hours. Working hours rose by 15% in Spain, by 21% in Greece and by 23% in Poland. In Germany, however, there has only been an increase of 2% since 2013. These stagnating hours also have an impact on national income and social security in the country.

Another underlying problem is the high part-time rate, which results in part from the steep tax rate on middle incomes, which makes overtime unattractive. In international comparison, the part-time rate is much lower in countries such as Italy at 18% and Poland at 6%. The labor market in Germany also seems to offer little incentive to increase the employment rate of women, especially mothers. They have expressed the desire to extend their working hours, which in turn requires a better expansion of the care and education infrastructure for children.

Need for political action

In order to improve the situation, experts and politicians are calling for fundamental changes. It is proposed that disincentives such as retirement at 63 should be abolished in order to encourage more people to stay in the workforce longer. The early pension regulations could lead to a decline in the overall German work volume, while at the same time women's employment is already more fully utilized than in many other European countries. Creating better framework conditions and incentives could help to sustainably increase working hours in Germany.

Overall, it is obvious that Germany faces a significant challenge in order not to fall behind in international comparison. The path to a higher employment rate and working hours requires both political and social efforts.