The latest figures from the Institute for Employment Research (IAB) reveal a concerning trend in the German labor market, highlighting a potential stagnation masked by a surge in secondary employment and part-time work. Data released this week indicates that approximately 4.72 million individuals in Germany engaged in supplementary employment during the third quarter of 2025, marking a 1.6% increase compared to the same period last year. This expansion in side hustles is occurring alongside a record high part-time employment rate of 40.1%, the most significant figure recorded for a third quarter.
According to the IAB’s analysis, 11.2% of all employed individuals are now holding down secondary jobs, with the average individual dedicating 8.2 hours weekly – a 0.2-hour increase from the previous year – to these additional roles. While the number of part-time workers rose by 1.0%, a simultaneous decline of 0.7% was observed in full-time positions, raising questions about the evolving nature of work and job security. The Institute attributes the increased part-time rate, in part, to employment gains within sectors traditionally characterized by a high prevalence of part-time roles, notably healthcare and social services.
Despite the apparent dynamism indicated by the rise in supplementary employment, the overall number of employed individuals remains largely unchanged at approximately 46 million. The data paints a picture of a workforce increasingly reliant on second incomes or flexible working arrangements to supplement primary employment, a situation that some economists are interpreting as a symptom of broader economic challenges.
Enzo Weber, from the IAB, explicitly stated, “The slowdown in the German labor market continues: progress is only visible in the areas of secondary jobs and part-time ratios”. This observation invites critical scrutiny regarding the sustainability of this trend. While offering flexibility for some workers, the escalating reliance on secondary employment could be masking a lack of high-quality, full-time opportunities and potentially contributing to wage stagnation. Further investigation is needed to determine whether this shift represents a genuine adaptation to the changing nature of work or a concerning indicator of underlying economic fragility and the potential erosion of traditional employment structures. The reliance on part-time and secondary employment, while presenting some advantages, risks creating a precarious workforce and exacerbating existing inequalities.