Germany sees fewer workers but longer hours, data show
Official data show that the number of workers in Germany has declined while average working hours have lengthened. The euro area's largest economy faces both labor market contraction and productivity pressure.
Anadolu Ajansı Ekonomi · Bahattin GönültaşAccording to an Anadolu Ajansı Ekonomi report, data from Germany's Federal Statistical Office (Destatis) showed that the number of workers fell on an annual basis while the average working time lengthened. Per-capita hours rose and total hours worked posted a small increase, the data showed. Demographic pressure is deepening the structural labor shortage.
Economists said the development illustrates the productivity challenges facing the German economy. Labor market contraction is adding cost pressure in the industrial sector, while in services the labor shortage is feeding wage growth. The Bundesbank has previously described longer hours as a short-term compensation mechanism.
The federal government is trying to ease the pressure with migration-focused labor policies and skilled worker visa rules. The European Commission is preparing recommendations on productivity reforms for member states. Employment and wage data in the coming quarter will be watched closely.
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