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Working in Germany: How is the pandemic affecting jobs?

The coronavirus crisis has hit some industries hard, while boosting others. We looked at what it could mean for jobs and salaries.

Published: 8 September 2020 16:46 CEST
Updated: 1 October 2020 16:17 CEST

Working in Germany: How is the pandemic affecting jobs?

A bar closed in Munich in April during the coronavirus shutdown. Photo: DPA

This year has seen lots of big changes in the way we work, from doing 'home office' more often to having hours cut by employers.

In the second part of our series on working in Germany, we delved into a study by Welt on jobs.

It shines a light on which industries are thriving, and those not faring so well at the moment. Here's what we know about current average salaries in some sectors and how the pandemic is shaking things up.

IT sector winning

There's no doubt about it: Information and communications technology, or IT, is booming around the world. So it's no surprise that the industry is gaining more importance in Germany, too.

Before the pandemic, the IT services sector already had around 781,000 employees and is on the way to catching up with the automotive industry, where, according to the Federal Statistical Office, 954,000 people are employed.

While the number of employees at car manufacturers and suppliers grew by just 11 percent in the six years before the pandemic hit, the number of IT jobs increased by an impressive 41 percent.

The fact is that no industry can do without IT experts. The virus crisis will accelerate rather than slow down this trend, experts say. That's because distance rules and quarantine measures have led to a shift in the way we use and rely on the Internet.

Working from home, which has become part of everyday life for many people, means there's a dependency on hardware and software in many people's everyday working lives.

So what does that mean for wages? Well, the political and social reaction to the virus indirectly improves the salary prospects of IT workers, while it brings with it great uncertainty and restrictions for other industries.

“Many employees in Germany are already noticing the consequences of the corona pandemic on their wallets,” said André Schaefer, salary expert at the online job platform StepStone.

Lots of people are taking a financial hit due to the crisis. Photo: DPA

The effect of 2020 on people's lives is massive.

More than seven million employees in this country were temporarily on Kurzarbeit (reduced working hours) at the peak of the crisis, and many people are still working less.

Clubs are still not open and some businesses, such as bars and venues, have had to restrict the amount of people they allow in due to distancing measures. This all impacts their ability to bring in cash.

“We will probably not really see the extent to which the crisis will affect salaries until next year,” said Schaefer.

“There will be sectors such as the IT industry where salary prospects will stabilise relatively quickly.”

Employees in demand such as IT experts or engineers will have very good salary prospects beyond the recession of 2020, he added.

Hospitality industry severely hit

Sadly, this cannot be said for other sectors of the economy.

A significant proportion of the more than one million employees in the hospitality industry are still fearing for their jobs. So it is of little consolation that in the 10 years prior to Covid-19, the hospitality and hotel industry recorded above-average salary growth.

In absolute figures, employees in both sectors of the economy are at the bottom end of the scale: in the catering trade, the average wage for a full-time employee was most recently €2,290 per month. And in the hotel and other accommodation industry it was €2,475.

These figures include those of managers as well as kitchen assistants and cleaning staff.

“In addition to the aviation industry, the hotel, tourism and leisure industry has suffered in recent weeks,” Schaefer said.

Parts of the retail trade outside the food retail sector are also going through a difficult time. Statistically, the retail trade is one of the sectors with below-average pay.

However, a particularly large number of people also find employment here, and people of all qualification levels. In total, almost 2.5 million people earn their living in retail. The average salary in this sector is €3,131 per month.

A cafe in Dresden in May. Photo: DPA

Health workers see high salary increases, but education lags behind

Even more people work in the health care sector in Germany. And contrary to a widespread perception, wage and salary trends in the medical sector are not terrible.

With an increase in salary of 30.2 percent, employees in the healthcare sector performed well above average (of 27 percent) between 2009 and 2019.

Their incomes rose more than twice as fast as inflation during this period. This of course does not apply to every medical worker who is, for example, living in an expensive city with high rents like Munich.

Health care pay contrasts with the below-average salary development in the education sector, where employees achieved an increase of 17.7 percent, only slightly above the general inflation rate.

“The fact that wages in the area of education and training have risen relatively little is almost a little frightening,” said Carsten Brzeski of ING Deutschland.

Car industry outlook not good

And there is something else that makes Germany pensive: one of the driving forces behind the development of incomes in this country before the coronavirus crisis was a sector that may now be on the verge of a structural transformation: automotive engineering.

Starting from a high level, gross incomes of car manufacturers and suppliers increased by a further 36 percent between 2009 and 2019.

Some industry experts doubt that such growth rates can be sustained over the next 10 years. That's because the challenges of e-mobility and driverless cars are changing the industry.

Add to that weak global growth and threats by US President Donald Trump to impose car tariffs, plus coronavirus and there's stress ahead.

What happens next?

The government has said it will help businesses and sectors affected by the pandemic by pledging funding and support.

But is it enough? One thing is for sure: hard times are ahead.

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The best-paid jobs you can get without a university degree in Germany

One of the reasons so many people decide to move to Germany is to take advantage of the healthy jobs market and decent salaries. In 2024, the average worker in the Bundesrepublik was taking home €51,900 per year before tax, and in many sectors the average is even higher.

But if you don’t have a university degree or professional qualification, you may feel like you’re limited to jobs at the bottom of the ladder and doomed to take a lower salary than you’re worth.

But there are plenty of fields with high earning potential that have relatively low barriers to entry. Which is good news for many, considering that the number of school drop-outs is rising in Germany.

Here are some of the best-paid jobs you can find in Germany that don’t require endless years of studying or training.

Real estate agent

If you think you can sell anything to anyone and love the idea of closing big deals, becoming a real estate agent – or realtor in American English – could be the way to go.

This varied job involves advising and supporting your clients in their search for a dream property, hosting viewings, creating advertising materials and contracts and ensuring all the relevant transactions go through. It’s ideal for anyone with good attention to detail and warm, sociable personality.

A miniature house with new house keys.

A miniature house with new house keys. Photo by Tierra Mallorca on Unsplash

There’s no special training or qualification required to become a real estate agent, but in Germany you do need to apply for a licence known as a Maklererlaubnis to start practising.

Once you get going, you can earn between three and seven percent commission on the sale price of each property you sell. Of course, you final salary will depend on your success rate and the property market in your area, but Stufyflix puts the average at around €3,930 per month.

U-Bahn or tram driver

Though you may not notice them most days, public transport drivers keep life moving in German cities – and they tend to be pretty well remunerated as well.

Generally, you’ll be responsible for working shifts driving trams or U-Bahns around the city, helping people get from A to B and responding appropriately in the case of an emergency.

A big advantage of moving into this profession is that you generally only need around B1 or B2 German: it’s more important to hold a driving licence and show a willingness to learn.

Another great thing to note is that these jobs are heavily unionised. Many tram and bus drivers will tell you that it’s no easy job, but at least you’ve got a union fighting to improve your pay and conditions.

For people looking to change careers, the good news is that the initial training only lasts around six months, and you’ll earn a liveable salary between €2,100 and €2,800 during this period.

After that, salaries depend on location but tend to average around €40,000 per year, with bonuses for working nights, weekends and public holidays.

Software developer

With average salaries around €5,800 per month, the IT sector is one of the most lucrative fields in the German job market.

The best part is, you don’t need a degree in computer science to get a job as a programmer in today’s market. In fact, many start-ups are happy to offer jobs – with generous starting salaries – to self-taught programmers or people who have graduated three-month bootcamps.

If you’re currently unemployed, many of these fast-track courses are paid for by the job centre, so you can learn to be a software developer completely for free. Otherwise, there are plenty of online courses you can take on websites like Udemy or books you can buy to learn languages like C+, Python and Ruby at next to no expense whatsoever.

Carpenter

Though carpenters do generally need one or two years of training, the great thing about this type of hands-on field is that you can enter as an apprentice and get paid to work while you train.

There are several different types of carpentry, from building shelving units for industrial buildings to erecting the bare bones of a residential property.

A carpenter sands down a block of wood in Cologne. Photo: picture alliance/dpa | Federico Gambarini

Asking friends and colleagues to recommend a trustworthy builder is a good option. (Photo by Nasim ISAMOV / AFP)

If you’re good with your hands, love being physical active and overcoming technical challenges, carpentry could be a great career for you – and the money’s nothing to sniff at either.

Once qualified, the average carpenter in Germany earns around €43,700 per year, but this can rise to as much as €52,000. And with Germany battling a severe shortages of skilled carpenters, salaries are bound to keep rising in the coming years.

Administrative assistant

If you’re someone who likes to stay organised and presentable, then moving into a career as an administrative assistant could be the ideal move for you.

Though the specifics of the job depend on the company, most administrative assistants spend their days making sure everything in the office ticks over as it should, answering the phone, distributing memos, organising appointments, preparing reports and carrying out other important administrative tasks. In Germany, of course, you may also need to be proficient in the use of a fax machine.

Though there’s no formal qualifications or training required to become an admin assistant, you’ll need to show you have the qualities and skills required, including good organisation, excellent communication skills, the ability to multitask and strong attention to detail.

According to jobs portal WorkerHero, administrative assistants earn an average of €41,730 per year in Germany, but if you end up as a personal assistant to a high-powered corporate executive, the pay can go much higher.

Bank clerk

If you’ve got a good head for numbers and enjoy offering advice and assistance, transitioning into banking could be a sensible – and lucrative – career move.

Generally, you’ll need to do a traineeship with a bank to break into this field, but no degree is required – and once in there are good chances for progression.

Interestingly, the banking sector is one area of the economy where skilled workers are desperately needed, so get your foot in the door now and you’ll be in a great position to negotiate salaries later.

A sign for Postbank, one of the major banks in Germany.

A sign for Postbank, one of the major banks in Germany. Photo: picture alliance/dpa | Marijan Murat

According to job search portal Indeed, the average bank clerk in Germany earns a very respectable €45,500 per year, but that can go up depending on the bank you work for and your specialisms.

If you work your way up the ladder, the pay goes up incredibly quickly, with some bank managers earning as much as €75,000 per year.

Events planner

Though events planning is no easy ride, it can be a huge buzz for people who thrive under pressure and enjoy the satisfaction of pulling off a dream wedding or a major corporate event.

People with impeccable organisation skills, a sociable attitude and naturally elegant taste will find themselves well-suited to this career, and the best part is that no formal qualifications are needed – though taking a short course could help you learn the ropes faster.

Once you’re underway and working with clients, the sky’s the limit to how much you can earn: some of the best paid wedding and events planners earn as much as €100,000 per year.

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