German work ethic: US media Bloomberg paints a bleak image | EUROtoday

As of 8:23 p.m | Reading time: 4 minutes

PPoliticians like Christian Lindner and managers like Christian Sewing are assured of their prognosis: the Germans, they are saying, work too little. “In Italy, France and elsewhere there is significantly more work done than here,” Finance Minister Lindner just lately claimed. “We have to make it clear that we have to work more, harder and differently,” demanded Deutsche Bank boss Sewing in an interview with WELT AM SONNTAG.

Now a significant US media can also be taking over the talk. The monetary information company Bloomberg asks in an opinion article: “Have the Germans forgotten their famous work ethic?” Author Chris Bryant, who lives in Berlin, makes use of information from the OECD to return to the conclusion: Lindner and Sewing may very well be proper.

One should “not think of the Germans as lazy or complacent” to ask oneself whether or not they might make higher use of their untapped work potential, writes Bryant. This refers primarily to ladies and other people nearing retirement. More work would assist the nation finance the vitality transition and “a generous social security system,” stated the journalist.

Until just lately, Germans discovered a stability between a powerful financial system and an excellent life. Although they take pleasure in considerably extra paid trip days than Americans, for instance, manufacturing elevated by a mean of two p.c per yr within the 2010s.

But now, warns Bryant, the system is starting to crumble. He identifies a number of causes for this. Cheap gasoline from Russia and excessive demand for German exports contributed to success previously – components that at the moment are disappearing. Production progress is slowing down and “a wave of baby boomers” are leaving the workforce.

The workers scarcity in lots of firms has turn into a vicious circle. The Germans, Bryant quotes from examine information, recorded a mean of 15 days of sickness final yr. This contributed “significantly” to the recession. The cause for the failures was the various respiratory illnesses following the corona pandemic – but additionally the psychological stress on the workers. Germany is “literally the sick man of Europe”.

Citing the Federal Employment Agency, the article states that final yr noticed the second lowest annual working hours since information started. This is because of sickness, much less extra time and extra part-time work. Bryant cites OECD information on annual common hours labored per resident grownup.

Germany subsequently ranks within the backside fifth in comparison with different industrialized nations. The quantity is barely decrease in France, Italy, Belgium and Turkey. At this level, Bryant acknowledges that international locations might have collected this information in numerous methods.

Part-time quota too excessive, retirement age too low

Bryant clearly criticizes a number of the circumstances in Germany. The Bloomberg columnist considers the part-time charge in Germany to be too excessive – particularly amongst ladies. In truth, nearly half of feminine staff are employed part-time, whereas the determine for male colleagues is round 13 p.c. He additionally criticizes that the retirement age is just too low. Although the Germans nonetheless retire later than the French (who work extra full-time), there’s “room for improvement”.

Specifically, the Bloomberg writer is asking on the federal authorities to hyperlink the retirement age – excluding bodily demanding jobs – to common life expectancy. This proposal is just not new; researchers on the Ifo Institute advocate for it, as does CDU chief Friedrich Merz. Journalist Bryant additionally sees that implementation may very well be “politically difficult”. Germany ought to subsequently create monetary incentives for older individuals to work longer within the meantime.

Bryant additionally sees an issue within the tax system. Wages are taxed too closely, whereas taxes on belongings are low. “No wonder people don’t see the point in working more,” writes the writer. He doesn't point out the talk about residents' cash. Bryant, alternatively, thinks it's good that kindergartens would get extra money, which ought to make it simpler for ladies to return to work – even when, as in different sectors, there are too few workers there.

“The Germans,” Bryant warns in conclusion, “cannot just rely on increases in productivity through artificial intelligence or on the first signs of economic recovery.” Instead, lots of them must “work a little more.”