Overall Score

6.3 in 2015 6.4
0 2.5 5 7.5 10

Key Finding

Sustained rates of economic participation are exerting downward pressure on the overall Index score, only partially offset by growing wage pressures and labour shortages. Rising salaries ensure that households’ financial balance sheets remain strong.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
6.1
Labour market
participation
5.5
Labour market
flexibility
6.7
Talent
mismatch
3.4
Overall wage
pressure
6.2
Wage pressure in
high-skill industries
9.9
Wage pressure in
high-skill occupations
6.6

COUNTRY OVERVIEW

View from the ground

The rate of employment in Germany is at a record level. More than 43m people participate in the labour market and the stability of the German labour market is expected to continue in the coming years. There is a great demand for combining IT with Engineering as well as looking for IT security and Big Data experts, however, only a limited number are available. This clearly demonstrates that there is an ongoing need for an education system that is able to adjust to the needs of business and address trends more quickly. Also, Germany needs more flexible forms of employment, such as the use of freelancers for upcoming project work. It is a really big trend, but the German Government doesn’t yet recognise this need and currently regulates the labour market without a differentiation between specialists and blue-collar workers.

Klaus Breitschopf, Managing Director, Hays Germany

Klaus Breitschopf, Managing Director, Hays Germany

Country Profile

Like the Eurozone as a whole, the German economy experienced a healthy growth over the past year.

A key source of this strength was a robust rise in industrial production.

There are signs from recent pay deals that wage pressures are building as a result of labour market tightness.

This in turn may encourage firms to raise capacity primarily via capital spending rather than raising headcounts.

Klaus Breitschopf, Managing Director, Hays Germany

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