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WORKING IN GERMANY

Why a record high number of employees went on sick leave in Germany in 2022

A record number of employees took sick leave in Germany last year, marking the highest number since 1991.

Woman with cold
Doctors are urging people with cold symptoms to take a test. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

At 5.95 percent, the employee sickness rate in Germany (Krankenstand) was the highest it has been since 1991, the Institute for Employment Research (IAB) reported. 

The previous year, the sickness rate had stood at 4.42 percent, so the increase is “very significant,” according to Enzo Weber of the IAB. 

Weber said this was due in particular to the sharp increase in respiratory infections and colds, many of which people experienced en masse after sickness protection measures enforced during the pandemic were steadily peeled away. But many employees also called in sick due to Covid itself.

This record level of sick leave increased the volume of work in companies and administrations in Germany last year, said Weber. It also led to public services slowing down, be it delayed or cancelled busses or daycare centres (Kitas) which closed their doors early due to a shortage of staff.

READ ALSO: Flu season makes a comeback in Germany

While Kurzarbeit – or the number of people working shorter hours – decreased in 2022, the effect of this was “cancelled out by work absences due to sickness at record levels,” said Weber, referring to the volume of work.

The bottom line, however, was that around 61.10 billion hours were worked, 1.4 percent more than in 2021. The number of people in employment also rose by 590,000, resulting in a record annual average of 45.57 million employed people. 

“An increase of more than half a million employed people in a crisis-ridden year is remarkable,” Weber said.

READ ALSO: Working in Germany: The 10 rules you need to know if you fall ill

Increase in part-time employment

At two percent, the number of part-time employees rose more sharply than full-time employment, which increased by 1.3 percent. This was also due to growth in industries with a high proportion of part-time workers, such as the hospitality industry and education.

Part-time jobs also rose to a record level. For the first time, more than ten percent of employees were logging 32 hours of work a week or less. In total, 4.26 million people were employed in these jobs.

Most recently, the labour market had been comparatively stable. The number of unemployed had risen slightly in February to 2.62 million. That marked 4,000 more than in January and 192,000 more than a year ago, the Federal Employment Agency reported last week. 

The employment rate in February remained stable at 5.7 percent.

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Volkswagen: Are 30,000 jobs at risk of being cut in Germany?

According to a media report, Germany's troubled carmaker Volkswagen could cut tens of thousands of jobs as part of savings measures. However the firm has not confirmed this figure.

Volkswagen: Are 30,000 jobs at risk of being cut in Germany?

Up to 30,000 jobs at VW locations across Germany are at risk of being slashed, German media outlet ‘Manager Magazin’ reported on Thursday, citing sources.

There are around 120,000 staff at six plants in the German cities of Wolfsburg, Brunswick, Hanover, Salzgitter, Emden and Kassel, as well as at Volkswagen Services, Volkswagen Immobilien and digital solutions company dx.one. The company also attracts international workers.

As of 2020, 6.4 percent of Volkswagen’s workforce were foreign. 

Volkswagen, which is Europe’s largest car manufacturer, has not confirmed reports on the number of job losses. 

According to an article published on Friday by German broadcaster NDR, VW’s intranet released a statement to employees saying that the works council and the company “reject the alleged target of cutting 30,000 jobs”.

However, the firm did say that it needs to make savings. A company spokeswoman told German media: “One thing is clear – Volkswagen must reduce its costs at its German sites. This is the only way the brand can earn enough money to invest in the future.

“How we achieve this goal together with the employee representatives is part of the upcoming talks,” she said. 

What’s happening at Volkswagen?

Volkswagen recently cancelled a job security agreement with the trade unions that had been in place since 1994. It means that jobs are now only guaranteed until the end of June 2025 compared with 2029 previously – unless another agreement is reached. 

The company said that if there is a return to the collective agreement prior to January 1st, 1994 “redundancies for operational reasons cannot be ruled out”.

The firm, which cites high costs in its core brand VW Passengers Cards, also said plant closures may be on the cards. It is the first time that the company has considered closing some of its factories in its 87-year history.

READ ALSO: Will there be job losses and plant closures at Volkswagen in Germany?

What else do media reports say?

According to the media report in Manager Magazin released on Thursday, the crisis-hit car manufacturer could also cut its investment plans from €170 billion to €160 billion over the next five years.

The business outlet reported that the situation could be particularly bleak in VW’s research and development fields. According to some forecasts, 4,000 to 6,000 of the approximately 13,000 employees in Germany may face losing their jobs, the outlet stated.

According to insiders, the savings are necessary because many group divisions are lagging behind their expected revenues. The report states that the VW core brand alone is around €4 billion behind expected returns this year.

In the first half of this year, VW suffered from sluggish demand for new cars. Business has been particularly weak in China, where the VW Group sells about a third of all its cars. Sales shrank by 2.4 percent to 4.3 million vehicles.

Due to less demand for e-cars in particular, the group has also reduced production at some locations. The plants in Wolfsburg, Emden, Zwickau and at Audi in Ingolstadt and Neckarsulm have reduced capacity by a quarter and cancelled expensive night shifts.

Trades union IG Metall has vowed to fight back against cuts. 

“First of all, the threat of mass layoffs and plant closures must be off the table,” IG Metall trade union spokesperson Jan Mentrup told The Local recently. 

READ ALSO: German union not ruling out strikes if Volkswagen talks fail

The union has also threatened strike action. Mentrup said that “warning strikes could follow from December 1st after the end of the peace obligation”.

Negotiations, which the union hopes will result in new collective agreement, are set to begin on September 25th. 

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