6.4 million jobs

Low-wage jobs in Germany have fallen

The higher minimum wage has caused the low-wage sector in Germany to shrink significantly (see video above). In April last year, there were 6.4 million jobs below the threshold. This is 1.1 million fewer than in April 2022, according to the Federal Statistical Office.

"One explanation for this development is the increase in the minimum wage from 9.82 euros to 12 euros between January and October 2022," the statisticians explained. Another reason is that trade unions are increasingly focusing on minimum payments for lower groups, reported the German Institute for Economic Research (DIW).

In April 2023, 2.4 million jobs were paid the statutory minimum wage. Around one in four people in marginal employment received only the minimum wage (26.6 percent). Full-time and part-time jobs, on the other hand, were usually better paid.

Jobs in the hospitality industry in particular
It is mainly women who work in the low-wage sector (19 percent vs. 13 percent of men). In terms of sectors, around one in two jobs in the hospitality industry (51%) were in the low-wage sector, followed by agriculture, forestry and fishing (43%) and arts, entertainment and recreation (36%). The lowest proportions are in public administration, finance and insurance, information and communication and water, waste management and environment.

According to the Federal Statistical Office, one in six employees (excluding the self-employed) in Germany had a low-paid job in April 2023. In April 2022, this figure was still 19 percent of employees.