Rising inflation: Interview on the topic When is work still worth it? in the F.A.Z. Podcast

Rising inflation: Interview on the topic When is work still worth it? in the F.A.Z. Podcast

According to a report by www.faz.net,

Because of high inflation, citizens' money will rise by a further 12 percent in January. This causes resentment among employees in the low-wage sector. In the F.A.Z. Podcast for Germany, in an interview with labor market economist Holger Schäfer and entrepreneur Dominic Krätz, we explore the question of when work is still worthwhile.

Inflation has risen sharply in Germany in recent months, leading to an increase in citizens' benefits by a further 12 percent. This measure is intended to strengthen citizens' purchasing power, but also has an impact on the labor market. Employees in the low-wage sector in particular are confronted with the question of whether a full-time job is still worthwhile.

Increasing the citizen's allowance can lead to a reduction in motivation to take a full-time job as the financial incentives are reduced. This can lead to an increased shortage of skilled workers and higher fluctuation in the labor market. Companies may have difficulty finding and retaining skilled workers, which could impact productivity.

Furthermore, the higher citizen's benefit payments can mean that employers are forced to adjust wages in order to remain competitive and attract qualified employees. This, in turn, could lead to rising production costs and price increases, further driving inflation.

Overall, the increase in citizen's allowance could lead to a profound change in the labor market and the competitiveness of companies due to high inflation. It is important to closely monitor these developments and examine possible countermeasures to minimize negative impacts on the economy.