"Maintaining outdated industries via temporary employment schemes"
*The German economy is grappling with a significant predicament: The population is rapidly aging and becoming increasingly unproductive. "This is unprecedented in the progress history of the last 200 years," says Sebastian Dettmers, CEO of the job platform Stepstone Group. In the ntv-Podcast "Startup - Being Completely Real", he sounds the alarm: "We need to increase productivity. If that doesn't work, we'll have to work more." He criticizes the current political landscape, stating, "I rarely hear politicians discussing ways to boost productivity. Instead, I see many measures aimed at keeping it low."
ntv.de asks, "What impact will Artificial Intelligence have on the labor market?"
Sebastian Dettmers: We have the means to automate work alongside AI, yet we're barely using these tools efficiently. Productivity has been stagnant in this country for about five years. This is unheard of in the progress history of the last 200 years. AI hasn't helped so far. So, we must consider: How can we effectively utilize these tools to reduce bureaucracy and boost productivity, rather than create more of it?
How does this relate to the demand for people to work more?
This isn't just about stagnating productivity but also about the development of the workforce. The working population is dwindling. The ratio of workers to non-workers, particularly retirees, has shifted. Currently, we have about three workers per pensioner in Germany. In the next 20 to 30 years, this ratio will drop to approximately two. With fewer people running the welfare state, we're asking, "Do we need to work more?" My response: "We need to boost productivity, as we've done in our progress history. If that doesn't work, we'll have to work more."
Is this an issue solely for Germany, or globally?
The Americans work more than us, and that's one reason why we rely on them in productivity statistics. However, they work longer hours. That's the discussion we need to have as a society: How important is economic growth to us, how important is wealth, and how important is it to us to work less? The truth is: We have pensions, healthcare, and necessary investments in education, infrastructure, and other neglected areas to pay for. How can we afford this, with more productivity or more work? One of the two must give. I rarely hear politicians discussing productivity and ways to increase it. Quite the contrary, I see many measures aimed at keeping it low.
Example?
We keep struggling industries alive, which we call: short-time work. This was a bridge during the pandemic, but it still exists. Short-time work means I have employees I can't effectively use, and the government pays me instead. That's a foolish move. What happens in the USA? These people lose their jobs and find new ones. Statistically speaking, they earn more money and are more productive in their new jobs. This gives the economy a sort of rejuvenation treatment. This doesn't happen in Germany. The labor market dynamics have significantly decreased, even during crisis periods. Companies are partly responsible for this.
Stepstone is a big job platform with a vast database. To what extent do you notice a difference in work ethic among different generations?
A lot has changed. Despite economically tough times, unemployment remains at a record low. This allows employees to express their needs and desires differently than they did 20 years ago. Specifically, Generation Z does this. However, the needs of young people haven't significantly changed over the past 20 years. What's changed: We have more relationships where both partners are employed. This increases the demand for a certain degree of flexibility. We need to ask ourselves: How can we make it easier for people, regardless of gender, to return to work? The main needs that young employees also have are classic: job security and fair pay. After that come other topics, such as flexibility or meaning.*
This interview with Sebastian Dettmers was shortened and simplified for better understanding. Listen to the full conversation in the ntv podcast "Startup - Being Completely Real".
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Given the context, here are two sentences that incorporate the provided words:
Unable to adequately leverage Artificial Intelligence to address productivity issues, Germany faces a potential skills shortage in the labor market, leading to concerns about unemployment as the workforce shrinks.
To combat the growing challenges of unemployment due to the aging population and skills shortage in the labor market, there is a pressing need to rethink current employment policies, including the use of Artificial Intelligence to increase productivity and solve the skills gap.
