Hidden reserves: the untapped labor potential

The latest figures from the Federal Statistical Office (Destatis) reveal an enormous untapped labor potential in Germany. This refers to the so-called hidden reserve—people who want to work but are (in some cases) not available for the labor market in the short term and are also (in some cases) not actively looking for work.

According to Destatis, the silent reserve comprises a total of 3.1 million people, who can be divided into three categories. The first group includes people who are looking for work but are unable to take it up due to short-term obligations (caring for relatives, etc.). The second group includes people who would be available in the short term but are not actively looking for work and believe that they will not find a suitable job. The third group comprises people who are neither looking for work nor available in the short term, but who generally want to work.

Looking at the details of the hidden reserve, the gender-specific differences are particularly striking. While 31.3% of women between the ages of 25 and 59 are unable to take up work due to care responsibilities, this applies to only 4.9% of men. It is also striking that over 50% of people in the hidden reserve have medium or high educational qualifications.

We were also interested in the following topics:

• Heat in the workplace: While Harvard studies show that cognitive performance drops by up to 13% at temperatures above 30 degrees Celsius, German employees remain legally obliged to work, according to an analysis by LTO. However, employers must implement graduated protective measures, which are recommended at temperatures above 26 degrees Celsius and mandatory at temperatures above 30 degrees Celsius, according to the FAZ. When working from home, the responsibility for maintaining appropriate temperatures generally lies with the employees themselves.

• Minimum wage increase: Last Friday, the Minimum Wage Commission unanimously decided on a gradual increase in the statutory minimum wage to €14.60 by 2027. The minimum wage is set to rise from the current €12.82 to €13.90 as early as the beginning of 2026. Despite the unanimous decision, the move has been met with criticism. Employers fear cost increases, while unions welcome the increase as necessary to ensure living wages.

• Lack of appreciation in the workplace: A silent crisis is sweeping German workplaces, as a recent study by Randstad shows. 41% of employees do not feel sufficiently valued or recognized. This lack of appreciation is becoming a key reason for resigning—one in five employees would change jobs because of poor leadership.

This text first appeared as an editorial in the weekly politjobs newsletter. If you would like to receive this newsletter with the latest jobs in politics directly by email every Wednesday, you can subscribe to it here.

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