Friedrich Schneider, an economist and expert on undeclared work from Linz, argues that eliminating mini-jobs in Germany would significantly escalate illegal labor. Speaking to the “Bild,” he strongly opposes such a move, warning that it would cause the black market to surge again. Based on his initial estimates, this rise is projected to amount to at least 25 billion euros annually by 2027, predicting severe long-term negative consequences for Germany.
Schneider’s reaction follows proposals from the pension commission suggesting the removal of mini-jobs. He reminds readers that these jobs were implemented at the beginning of this century specifically to contain black market activities, describing them as one of the most successful policy actions undertaken. Historically, the black market shrank considerably, moving from 20 to 23 billion euros in 2003. Schneider views the mini-jobs as, in effect, a partial legalization of previously undeclared work in Germany; he currently estimates that the value of labor performed through undeclared work totals around 500 billion euros per year.
Furthermore, the German Retail Association (HDE) has also cautioned against phasing out these roles. Stefan Genth, CEO of the HDE, noted that the retail sector currently employs approximately 800,000 mini-jobbers. For the industry, the abolition of these short-term roles would constitute a “fatal blow” during an already economically challenging period. According to Genth, mini-jobbers are indispensable for cushioning the demands of peak business hours. If they were removed, the retail sector would be forced to increase reliance on digitization to compensate for the resulting labor shortage.
