Bernd Fitzenberger, director of the Institute for Employment Research (IAB), warns that the labour market will still face significant challenges in 2026. “Overall, we expect a slight decline in unemployment this year, but it will likely be modest” he told the Bavarian media group. He cautioned that the number of unemployed remains at a relatively high level, and that the creation of new jobs, hiring, and opportunities for employment are historically low.
Even for the current year, Fitzenberger highlighted: “We are at a point where the problems in the labour market, which are undoubtedly high, are unlikely to worsen any further”.
Regarding the debate on working hours, the expert noted that Germany has an unprecedented volume of total hours worked and record levels of labour market participation. However, the average hours worked per person are falling. “This is linked to the high part‑time rate. Limiting options for reducing working hours can help, but it also risks pushing many people completely out of the workforce” he explained.
