Approximately four out of every ten new hires seem to have temporary positions.
Around forty percent of fresh recruits, roughly speaking, initially receive only a temporary agreement, and this figure increases to nearly fifty percent for individuals under twenty-five years old. Although this rate has been gradually decreasing, it still remains substantial, as per research conducted by the Institute for Economic and Social Research (WSI) of the Hans Böckler Foundation. There are substantial disparities in different regions.
The WSI examined data from the Federal Employment Agency in the last quarter of 2023. They discovered that 37.8% of all new hires contributing to social security were on temporary contracts. In the last quarter of 2021, right after the COVID-19 crisis, this figure was 42%.
The share of temporary contracts among young workers was 48.4% at the end of 2023. For individuals aged twenty-five to fifty-four, it was 35.1%, and for those fifty-five to under sixty-five, it was 32.3%. Among new hires who were sixty-five and above, the share of temporary contracts significantly increased, with more than fifty percent of these individuals employed on temporary contracts in 2023.
The WSI attributes the significant regional variances to the industries where new hires are most often offered temporary contracts. Across the country, the highest share of new hires on temporary contracts can be found in Heidelberg, a university city with a large university hospital (62.5%). This is closely followed by Cologne, where the media and advertising industries have a strong presence. In Cologne, 62.2% of new hires contributing to social security were hired on temporary contracts. According to the WSI, the third-highest share can be found in Potsdam (59.0%), which is due to the film industry there.
The decrease in the percentage of temporary contracts among new hires almost reached its pre-pandemic levels by the end of 2023. Despite this progress, nearly half of young workers still receive only temporary agreements.
