At first glance, the data from the Organization for Economic Co-operation and Development (OECD) on the German economy are surprising. In 2022 the average American worked more than 1,800 hours a year, while the average German only 1,340. “However, we cannot conclude that Germans are lazy,” says Enzo Weber of the Institute for Labor Market and Occupational Research IAB, a sort of think tank of the German Federal Employment Agency: “The statistics do not show that Germans work less. Quite the opposite. Germans work more. However, the mere fact that almost 50% of women work part-time significantly reduces average working hours.’

In Germany, the times when only men worked full-time and women took care of the household are long gone. Today, 77% of women work, even if over the last 30 years the rate of part-time employment has increased significantly.

Generation Z better than its reputation

The so-called Generation Z, i.e. those born between 1995 and 2010, seem to have a particularly bad reputation. They are said to want as much free time as possible with the highest possible earnings. Enzo Weber talks about a bias that he cannot confirm and explains that success in the profession is also particularly important for Generation Z. “Generation Z is therefore no different from previous generations,” emphasizes the German expert.

But how does the demand for “less work” go hand in hand with the growing demand for skilled labor and the desire to maintain the existing level of prosperity? And all this while we know that demographic developments will reduce the number of workers in Germany by seven million by 2035.

One lever, when increasing working hours is unattainable, is to increase the quality of work, i.e. productivity. Enzo Weber believes that it makes sense to boost productivity: Through training programs, investments in digitization, artificial intelligence and the ecological restructuring of the economy. “We should not wait until someone is left behind and then try to bridge the existing training gap with emergency measures. On the contrary, people must be able to take initiatives in advance, to play an active role themselves,” the German expert estimates.

Productivity in Germany is in decline

For now, however, the situation on the productivity front does not inspire optimism. Enzo Weber finds stagnation in this area. According to a study by the McKinsey Global Institute MGI, productivity in Germany increased by 1.6% between 1997 and 2007. From 2012 to 2019, however, it halved to 0.8%. This is partly because many jobs were created in sectors with lower productivity, such as health care services and education. In them, an increase in productivity is only possible to a limited extent.

Regardless of the path of productivity, there is still an untapped potential workforce. “This is not only about women’s employment and the increase in the working hours of part-time workers, but also about many immigrants and Germans who do not have a school leaving certificate or vocational training and who often lack opportunities to be a productive part of the labor market.” says Marcel Fratcher of the German Institute for Economic Research DIW in Berlin.

Editor: Stefanos Georgakopoulos