The German job market

The Job Market in Germany is a prime example of a widely focused structure for the demand and supply of workforce. Oriented towards a pan-European labor supply, the general architecture of the job market in Germany relies heavily on certain core features, of which most of them are the result of a thorough evolution of the job market throughout the last 250 years. Due to historical developments, economic urgencies and also the socio-economic agendas of the various political parties that have governed Germany during that time, a strongly regulated labor market in favor of the employees has emerged.


A vast majority of rules and regulations serve as the judicial background for most of the blue- and white-collar jobs. This is where the traditionally powerful labor unions exert their great influence on the job market in categories like wages, working times and general working conditions. To foreigners, the power of labor unions in Germany may sometimes look overwhelming and in some instances even malevolent to the general well being of the economy. However, this strong position of the unions grew out of a deeply rooted historical system of social injustice, which makes it an essential part of the job market in Germany and thus even more important for foreign investors, to have sufficient knowledge in being able to deal with these special requirements in order to establish a successful business.


Another major influence on the German job market and at the same time a huge positive factor is the structure of education following the traditional school system. This is where the so-called "Dual System" comes to work, meaning a combination of higher education at university level with a regular job education in a company or corporate business. The German Economy was one of the first to introduce this system and has since benefitted from its merits and has since been asked multiple times to share their knowledge and experience in this field with other countries.


The final major characteristic of the German job market is the huge and extremely benevolent system of social security, which has its core focus on the maintenance of the once acquired social status in terms of a job loss. This means that, given certain conditions are met, employees who lose their job can obtain a social security payment of up to 70 % of their last wage for one year, thus giving them enough time and opportunity to look for a new job while being able to maintain the social status they have already achieved.

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