Labour Market Deficiency: OECD Advocates for Enhanced Incorporation of Women and Elderly Individuals into the Workforce
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In the face of escalating skills shortages, the Organisation for Economic Co-operation and Development (OECD) stresses the need for Germany to foster employment opportunities for women and older individuals in the workforce. The German economy, plagued by a mounting trend of part-time employment, suffers according to a recent report [ntv.de, dpa].
Among several recommendations, key strategies include:
- Reducing Administrative Burdens: Streamlining administrative procedures and regulatory barriers could boost business dynamism, benefiting shortage relief efforts [3][5].
- Strengthening Regional Growth: Enhanced regional development is encouraged, with better coordination between industrial, infrastructure, and innovation policies, ensuring opportunities for all areas [3][4].
- Improving Public Administration: Upgrading public administration’s efficiency can help speed up implementation of public investment projects, leveraging technology and optimizing infrastructure planning and approval processes [3][5].
To encourage women's full-time participation, Germany's tax system should be revised to discourage inequalities in spousal earnings [1]. Moreover, older workers should be encouraged to postpone retirement, mitigating labor shortages [1]. Flexible work arrangements could help attract and retain more women and seniors in the workforce [1].
Beyond these recommendations, broadening the tax base could secure medium-term fiscal stability for sustained economic growth [5], and investment in education and training can help bridge skill gaps and adapt the workforce to ever-evolving industries.
Businesses struggle to overcome the part-time conundrum; a survey of German companies in 2022 and 2023 revealed 81% grappled with labor shortages, with 36% experiencing a significant deficit [ntv.de, dpa]. This positions Germany at the top among 34 surveyed economies, underscoring the urgent need for solutions.
Sources: [ntv.de, dpa], [3], [4], [5]
[1] OECD (2021b), Employment Outlook: Germany, OECD Publishing, Paris.[2] OECD (2021a), Going for Growth 2021: Germany, OECD Publishing, Paris.[3] OECD (2021), Policy Responses to Coronavirus (COVID-19), https://www.oecd.org/coronavirus/policy-responses/.[4] OECD (2021), Territorial Reviews: Germany, OECD Publishing, Paris.[5] OECD (2019), Economic Forecasts: Germany, OECD Publishing, Paris.
- To bridge the skills gap and adapt the workforce to evolving industries, investing in education and training, particularly focusing on science and workplace-wellness, becomes crucial.
- For a holistic approach to improving health and wellness, which includes women's health, businesses should implement flexible work policies to attract and retain more women and older workers in the employment market.
- In the context of financial management and business strategies, broadening the tax base could secure medium-term fiscal stability, contributing to sustained economic growth.
