Committee News

Social & Labor Affairs

Recommendations for an Employment-Friendly Labor Market

In its new position paper “Für einen beschäftigungsfreundlichen Arbeitsmarkt” AmCham Germany’s Social and Labor Affairs Committee makes recommendations and states core demands for an employment-friendly labor market for the upcoming legislative period.

In international comparison, Germany still has one of the most regulated labor markets. An employment-friendly labor market, however, requires both sufficient flexibility, as well as a reliable legal framework, which allows for new innovations without ignoring the protection of workers. To ensure economic success as well as competitiveness, flexible forms of employment need to be preserved and expanded. Digitization allows for new forms of labor and makes more flexible working hours possible. Rigid regulations are not an answer to the challenges of new technologies in a globalized world. Germany needs labor market regulations that enable it to harness the opportunities of a modern and digitized work environment. This requires a critical review and modification of the existing social and labor regulations.

In times when transatlantic relations are being reorganized and protectionist and isolationist tendencies become more apparent, AmCham Germany's member companies reaffirm a focus on free and fair trade as well as the free exchange of workers. For its internationally operating member companies, the issue of worker mobility is very important. Qualified workers should be allowed to work for a company in Germany as well as at the US headquarter. In order to ensure this, visa-waiver programs are a necessity and should not be jeopardized.

In an internationally competitive economy, a high level of skilled workers is essential. Germany has to ensure its high level of high skilled workers by adapting its education and vocation system in order to tackle the challenges of digitization.

Overall, a framework, taking into account the views of employees and employers, should be established and strengthened in order to ensure a stable and prosperous labor market with a high level of employment. The Committee put forward ideas on how to master the challenges of digitization for the workplace, while at the same time making use of digitization's enormous potential for society as a whole.

The paper can be accessed here.