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Germany records fall in proportion of workers on low wages

Published November 25,2022
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The number of workers in Germany in low-wage jobs has fallen markedly over the past four years, the Federal Statistical Office (Destatis) reported on Friday.

In April this year, some 7.5 million jobs paid under the threshold of €12.50 ($13.00) per hour, 514,000 fewer than four years ago. The share of low-wage jobs thus fell to 19% from 21% of all employment.

The decline was particularly marked in the eastern states of the country, with a fall by six percentage points to 23% of all employment. The share of low-paid jobs in the western states fell two percentage points over the four-year period to 18%

Destatis attributed this to the effects of the statutory minimum wage in the eastern states. It rose over the period to €9.82 from €8.84.

The hospitality sector generated two thirds of all low-wage jobs. Other sectors with a large low-wage component were agriculture and forestry, the arts and entertainment, and recreation.

Comparing the top 10% with the bottom 10%, the relationship was little changed over the period, with the top decile earning 3.28 times the bottom.

The top decile contains workers earning at least €35.80 per hour, while the upper limit for the bottom decile is €10.90.