OECD Employment Outlook: German real wages under pressure

How does an international organization assess the labor market situation in Germany? This is shown in the OECD's Employment Outlook, which also includes a section specifically focused on Germany. In general, the Employment Outlook addresses the situation on the labor market in all OECD member states and, in its current edition, also focuses on the consequences of the transition to climate neutrality.

The OECD basically states that although labor markets remain tight, they are fundamentally developing well. Many countries are recording high employment levels with correspondingly low unemployment, with the OECD average unemployment rate standing at 4.4%. At 3.3%, Germany is well below this figure and is well on its way to returning to its pre-pandemic level of 3.1%. In contrast, real wages in Germany have fallen at an above-average rate, with a decline of 2% in the four years since the start of the pandemic. In contrast, real wages in the OECD area as a whole rose by an average of 1.5%. However, the OECD also forecasts an increase for Germany by the end of 2024, mainly due to falling inflation, the payment of inflation premiums, and the increase in collectively agreed wages.

With regard to the climate-neutral transformation, the OECD expects a reallocation of jobs: while some jobs would be lost, new needs would arise at the same time, and in some occupations, job profiles would simply change. The OECD therefore speaks of a “moderate effect on overall employment.” In Germany, 21.1% of the workforce is already employed in environmentally-oriented occupations, while 4.8% is employed in “emission-intensive” activities.

However, for highly-qualified workers in emission-intensive occupations, the transition is relatively easy: the OECD estimates that the retraining costs for environmentally-oriented occupations are relatively low. With the right support and training measures, the transformation can thus become an opportunity for employees.

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• BMAS award: The BMAS award for the best possible securing of skilled workers, the German Skilled Workers Award, is entering its next round. Companies can submit their applications online until September 23.

• Working in old age: More and more retirees are continuing to work, with the million mark being exceeded for the first time in 2023. The NOZ knows what BSW founder Wagenknecht has to say about this.

• Career changers: More and more companies are also hiring career changers. t3n has summarized why this is the case and what requirements applicants still have to meet.

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