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Germany Faces Projected Labor Shortage as Working Hours Lag Behind OECD Peers

A new study reveals Germany ranks third-lowest in annual working hours among OECD nations, prompting government calls for reforms to avert a multi-billion-hour deficit by 2030.

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Mitarbeiterinnen in einem Großraumbüro.
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Overview

  • Germany recorded an average of 1,036 working hours per person in 2023, placing it third-last among 38 OECD countries, ahead of only France and Belgium.
  • The Institut der deutschen Wirtschaft (IW) warns of a looming 4.2 billion-hour labor shortfall by the end of the decade due to demographic shifts and underutilized workforce potential.
  • Chancellor Friedrich Merz has urged Germans to work more and more efficiently, while Labor Minister Bärbel Bas advocates for improved conditions to enable more mothers to work full time.
  • The IW study highlights that Germany's working hours have risen slightly since 2013 but remain significantly lower than in the 1970s and lag behind many other nations' growth rates.
  • Key policy proposals include expanding childcare infrastructure, reforming retirement incentives, and addressing barriers that limit full-time employment for women.