Gender inequality in the labor market

What is the situation regarding gender inequality? This question remains relevant in the German labor market because, despite progress in gender equality, unequal distribution of wages and working time models, among other things, remain widespread and have profound social and economic implications.

Figures from the Federal Statistical Office show that men continue to be the main breadwinners in most partnerships, as reported by Tagesschau. In only 10% of households does the woman earn more than her partner. This one-sided income distribution not only contributes to financial inequality, but also reinforces the unbalanced distribution of care work. A key factor here is the uneven distribution of part-time work. This is also illustrated by a new study by the Institute of German Economy, according to which around three-quarters of part-time managers in Germany are women, often due to family commitments.

A study by the Hans Böckler Foundation also shows that women are less likely than men to participate in career-enhancing training. Here, too, family commitments in particular, but also less support from superiors, prevent mothers and part-time employees from pursuing longer training courses.

These inequalities continue in other areas, as a new study by Ernst & Young on the gender investment gap shows. In 2024, startups founded exclusively by women received only 1% of venture capital, even though they accounted for 4% of financing rounds. Women are particularly underrepresented in capital-intensive sectors such as software & analytics and energy.

We were also interested in the following topics:

• Billions in loans: The CDU/CSU and SPD have agreed on billions in loans for defense and infrastructure, which are to be decided on in the current Bundestag. The aim is to strengthen military armament and expand transport projects, reports Tagesschau.

• Redistribution: The fight against inequality and poverty in Germany has slowed down. In particular, the standard rates for basic social security and state pensions have lost their poverty-reducing effect, according to the Hans Böckler Foundation.

• Ukrainian refugees: The living situation of Ukrainian refugees in Germany is showing progress, especially in terms of integration into the labor market. However, a new study by the IAB shows which factors continue to make access to the labor market difficult.

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