Agreement reached in wage dispute

An agreement has been reached in the public sector wage dispute. After several days of strikes and arbitration proceedings, unions and employers have agreed on a new collective agreement that will bring a two-stage salary increase totaling 5.8%. As both sides emphasize, the agreement will make working conditions in the public sector more flexible, modern, and attractive. The key points are summarized by Tagesschau.

From April 1, the 2.7 million employees in the federal and local governments will receive a 3% salary increase, but at least €110. A further increase of 2.8% will take effect on May 1, 2026. Further details of the agreement also include a higher 13th month's salary from 2026 and an additional day of vacation from 2027. According to the Ministry of the Interior, the cost of the collective agreement for federal employees will be approximately €1.94 billion.

We were also interested in the following topics:

• Future skills: What skills and abilities will be needed in the labor market of the future, and how can they be developed? In its magazine “Change,” the Bertelsmann Foundation provides an overview of the most important future skills, including self-management, adaptability, and critical thinking, in order to be prepared for the working world of tomorrow.

• Career choice: Young people are increasingly less likely to choose typical male or female professions, reports Die Zeit. There are changes in particular among hairdressers and carpenters, but there are still professions where little has changed, especially in the STEM field.

• AI in job applications: Due to a high volume of AI-generated applications, around 40% of companies have reduced the time they spend reviewing documents, according to a new study by HR firm Remote. As a result, not every application receives sufficient attention, which makes it more difficult to find qualified candidates.

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