Gender Equality in the German Labor Market

In Germany, the employment rate for women is impressive, standing at just under 78%, one of the highest in Europe. However, as nearly half of all women aged 20 to 64 (48%) work part time, the actual total number of working hours within this group is comparatively low. Yet women in Germany are often highly skilled and eager to work more provided overall working conditions improve. Unlocking this untapped potential is crucial, both from an equality-policy and economic perspective.
Particularly at a time of accelerated structural change, and as the shortage of skilled workers is growing, differentiated measures are needed in order to expand women’s ability to engage in paid employment. Increasing women’s labor-force participation would not only help mitigate discrimination in the labor market but also alleviate the shortage of skilled workers, ultimately contributing to overall economic prosperity. Moreover, it would empower women to exercise greater choice in the pursuit of their careers, attain greater financial independence, and safeguard against old-age poverty by ensuring sufficient income levels for their livelihoods.
Factsheet key facts and findings on women’s labor-force participation are presented below. It is imperative that women who are willing and able to engage in paid work are well informed about the nature and extent of occupational inequalities. This information is not only crucial for individual decisions but also for policymakers, businesses and civil society leaders. Without such data, informed decisions cannot be made. This overview also identifies gaps in the present state of knowledge that should be the subject of further research.
The factsheet begins by describing current gender gaps, including the nature and extent of inequalities and the ways in which they interconnect - for example, how working fewer hours can increase the risk of poverty in old age. It then highlights potential solutions that are categorized into thematic areas within the current policy landscape. In sum, aside from improving employment incentives, two approaches are seen as offering particular leverage with regard to realizing women’s untapped employment potential in Germany. The first involves increasing the control women have over the length and scheduling of their working time, also referred to as time sovereignty. The second entails introducing measures designed to help change traditional gender norms, encouraging a more fluid distribution of labor and household tasks.