Bernd Fitzenberger, director of the Institute for Employment Market and Career Research (IAB), sees significant challenges on the labour market even in 2026. “Overall, the IAB expects a slight decline in unemployment over the course of this year, but it will probably only fall modestly” he told the Mediengruppe Bayern. He warned that caution is still warranted because the number of job‑seekers remains at a relatively high level, while the creation of new jobs, hiring and employment opportunities are at historic lows.
Looking at the current year, Fitzenberger added: “We are at a stage where employment‑market problems, which are certainly severe, are unlikely to worsen further”.
In discussing the debate over working hours, the employment‑market expert noted that Germany’s total volume of worked hours is now larger than ever in the country’s history, and that labour‑force participation is at a record high. However, the average number of hours worked per person is on the decline, largely due to the high share of part‑time employment. “Attempts to narrow the scope of work‑time reductions could backfire, pushing many affected people completely out of the labour market” Fitzenberger warned.