Germany needs to take stronger action to bring more women and older individuals into the workforce as the country faces an increasingly serious shortage of skilled workers, the Organization for Economic Co-operation and Development (OECD) said in a report this week.
According to the Paris-based organization, part-time employment is rising, especially among women, parents, and seniors. The OECD warned that this trend, combined with current labor shortages, could significantly hinder Germany’s economic growth.
The report also drew attention to structural issues within Germany’s tax system, which it said discourages full-time work for women by incentivizing unequal earnings between spouses. In addition, the OECD criticized policies that promote early retirement, arguing they worsen workforce gaps.
Labor shortages are already having a noticeable impact on businesses. A survey spanning 2022 and 2023 found that more than 81% of German firms were struggling to recruit workers, with around 36% describing the shortage as “severe.”
