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Part-Time Nation: The Economic Risks Of Germany’s Reduced Work Hours

Despite record employment, millions are opting out of full-time work: it’s a trend that risks undermining growth, pensions, and the country’s future.

-Analysis-

HAMBURG — The trend is striking. Forty percent of employees in Germany now work part-time. That is around 17 million people, a record high and, apparently, the new normal.

For now, this number is no immediate cause for concern. More people are employed in Germany today than at any time since reunification, largely because more women and immigrants have entered the labor market. Overall, the number of hours worked has also gone up.

The problem is that more than half of all employees, 53%, would prefer part-time work if they could find a suitable position, according to a recent study by HDI Versicherung. At the same time, the German economy is struggling. Growth depends on more people working full-time. And it is primarily up to employers to make that happen.

Good reasons?

There are many reasons why people in Germany work fewer hours, according to the Federal Statistical Office. Some must care for children or relatives (24%). Others pursue further education (12%). Not all job seekers can find full-time work (6%).

But 27% of part-time workers simply choose to do less because they want to.

That adds up to roughly 4.5 million people for whom full-time work as a status symbol has apparently lost its appeal. For them, treating themselves no longer means driving a Mercedes to an all-inclusive resort in Spain paid for by a 40-hour week.

Instead, they prefer to work part-time and forgo luxuries. Less work, fewer taxes, lower consumption — the consequences for the economy and the pension system are severe. Politicians have taken note, but many companies have not. This is a serious misstep.

No bonuses, no incentives

The government is planning two new laws aimed at encouraging people back into full-time jobs. One would abolish the current cap of eight working hours per weekday, allowing longer and more flexible schedules. Ideally, this could make it easier to combine childcare and work, with parents spreading their hours before or after school. But it could also push employees to work even more than before, leaving them burned out and ultimately cutting their weekly hours further.

A second proposal would make employer bonuses to part-time staff for working extra hours tax-privileged. Yet according to a survey by the Institute for Employment Research, only 33% of part-time workers would be interested. More than half, 56%, would still refuse to add hours. And it remains unclear how many companies would even be willing to pay such bonuses.

79% of German employers offer no incentives at all to encourage part-time staff to move into full-time roles.

Other solutions are needed, and they cannot come from politics alone. Research by the ifo Institute shows that 79% of German employers offer no incentives at all to encourage part-time staff to move into full-time roles. Among the minority that do, incentives include flexible hours, employer-supported pensions, or childcare. But this is nowhere near enough.

Office worker walking with a briefcase. Image: Imago / ZUMA Press

It should not just be one-fifth of companies, but all employers who actively encourage part-time staff to work more. A standard question in every employee interview ought to be: “What would it take for you to work more hours?”

It is well known that many employees want flexibility in both hours and location. In roles where it is feasible, those who want to start at 6 a.m. or make up hours in the evening should be allowed to do so.

Balancing act

Taking a two-hour break in the afternoon could help some people get to a tax advisor, a tailor, or the supermarket. This is particularly important in rural areas and small towns, where opening hours are shorter. The feeling of not being able to juggle work and private life arises faster for that reason alone. Those who can make up their hours earlier or later and still reach a full eight-hour day should not be forced into part-time work.

At the same time, part-time work must not be a workaround for jobs that routinely demand excessive overtime. In many high-pressure service professions, such as law firms, consulting, or hospitals, “full-time” often means 60 hours a week or more. Many take part-time contracts as the only way to leave work on time. That should not be necessary.

Part-time staff who see no chance for advancement are more likely to lose motivation. Why should they add hours if they can afford to stay part-time and are not being trusted with new responsibilities anyway? No one who takes a few months or years part-time should fear lasting damage to their career. Companies must ensure that part-time employees also have opportunities for promotion and a clear path forward, provided they are prepared to return to full-time work.

True luxury

The part-time “bridging” scheme should also be used more frequently, though surveys show this is rarely the case. The principle is straightforward: anyone who wants to work less for a few months or years agrees with their employer on a set period. Once it ends, the employee automatically returns to full-time. This makes planning easier for both sides. Bridging part-time was designed for those pursuing further training or caring for relatives, but it could also be offered more widely to anyone who requests part-time hours.

Companies need to create conditions that make employees want to take on more hours.

Ultimately, it comes down to corporate culture. Companies need to create conditions that make employees want to take on more hours. Those who enjoy their job, value their team, feel recognized by their boss, and look forward to the company party will be glad to work full-time, even if they do not have to.

Because then you want to be there for those late-afternoon meetings, finish the project no matter what, and take on extra tasks to learn. True luxury is not working as little as possible. It is having a job that fulfills you.

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