To tackle labor shortages, Germany must integrate more of its workforce into employment.
Germany needs to bring a greater share of its labor force into employment to ease bottlenecks in companies. This includes increasing workforce participation rates and work hours. Therefore, incentives should be strengthened both for taking up employment and expanding individual working hours, financial disincentives should be reduced, and sufficient legislative possibilities for flexible working should be available. Additionally, the goal should be to integrate employable, healthy unemployed individuals and citizens' benefit recipients into permanent employment in the primary labor market, ideally in a way that ensures a livelihood. Principles such as promoting and demanding, effective and targeted support to navigate workday challenges, as well as work-related qualification even post integration into employment, are essential from the perspective of the economy. Necessary financial resources should be made available for this purpose. At the same time, benefit recipients are urged to actively engage in employment opportunities and enhancing employability. Employment incentives within citizen’s benefit schemes should also be strengthened, particularly ensuring the maintenance of the wage gap requirement.
To better integrate individuals with disabilities and their potentials into the labor market, legal uncertainties for companies regarding their employment should be minimized, and additional regulations should be avoided. A broad offering of information, especially for SMEs, alongside strong cooperation amongst relevant stakeholders, can aid this process. The German Chamber of Commerce and Industry (IHK) organization also offers support through its services.