Decline in low-wage jobs in Saxony-Anhalt in April 2023 - financial expert analyzes development and effects

Decline in low-wage jobs in Saxony-Anhalt in April 2023 - financial expert analyzes development and effects

According to a report by dubisthalle.de, the proportion of employees paid below the low wage threshold decreased in April 2023 compared to the previous year. The number of jobs in the low-wage sector fell by 23.0% and now stands at 153,000. Women in particular were more represented in the low-wage sector with a rate of 20.8% than men with 16.0%. The proportion of low-wage jobs in the manufacturing sector was 10.5%, well below the service sector at 20.4%.

The increase in the minimum wage to EUR 12.00/h has a significant impact on the reduction of jobs in the low-wage sector. In April 2023, the average gross hourly earnings in Saxony-Anhalt was EUR 17.24, which corresponds to a ratio of 69.6% to the minimum wage. This level of earnings is above the level of 60% that is described as a living wage (Kaitz index). This suggests that the wage situation has developed positively overall.

In Germany as a whole, the proportion of employees below the minimum wage threshold also fell. In the period from April 2022 to April 2023 it fell from 19.1% to 16.3%.

The above-mentioned developments indicate that the increase in the minimum wage has a positive effect on the wage situation in Saxony-Anhalt and Germany as a whole. In the long term, this could lead to an increase in purchasing power and a reduction in the risk of poverty. It can be expected that sustainable wage developments will have a positive impact on the consumer market.

It is important to keep an eye on further developments and analyze how the wage situation will affect the economy and the financial sector.