EU Economy
German jobs rise all in full-time employment unlike in UK, Ireland
By Michael Hennigan, Finfacts founder and editor
Dec 5, 2014 - 7:35 AM

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German employment rose over 43m in November 2014 for the very first time and the gain in jobs was in full-time employment with a fall in what are called 'atypical' types of employment as shown in the first chart above. In contrast the quality of the jobs created in the UK in particular and lesser so in Ireland, is lower.

Deutsche Bank economists say that since 2011, the marked increase in employment has been solely attributable to an expansion of regular employment, i.e. permanent full-time jobs with social insurance obligations.

Atypical employment declined in 2013 for the third year in a row. This was due – thanks to the high demand for labour – to a fall in jobs with fixed-term contracts. Marginal part-time employment (less than 20 hours per week) has continued to edge up since 2011, a trend likely attributable to a further increase in the female labour participation rate. Women account for some 86% of total marginal part-time employment, as many of them, for example, stay at home to look after their children (or there is a dearth of child care facilities).

The share of workers in regular employment rose to 67.5% in 2013 – the highest reading since labour market reforms were implemented in the mid-2000s. Since its low in 2006 the share increased by 2%. Even though economic activity has weakened in the course of 2014, the jobs trend probably continued.

Deutsche Bank said that one indication is that in a year-on-year comparison the number of employees required to pay social security contributions increased faster than total employment activity. In addition, demand for labour is still relatively high. At 515,000, the number of job vacancies – 95% employment with social insurance obligations and roughly 80% permanent jobs – is up 12% on the year.

In contrast, only 80,000 of 1.1m UK jobs added since 2008 were full-time employee positions

Irish full-time employee numbers grew by 14,000 in the 12 months to the third quarter of 2014 from a net addition of 28,000 jobs and remain 258,000 below the Q2 2008 full-time level, just before the economic crisis became a full-scale emergency.

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