To revive Germany’s struggling economy, Chancellor Friedrich Merz faces the challenge of high employment alongside decreasing individual work hours, as 4.8 million workers are set to retire by 2035. Merz’s coalition aims to encourage younger generations to increase their working hours to sustain economic growth, particularly as the labour supply dwindles. While Germany has one of the highest labour participation rates, the average working hours per employee are the shortest among wealthy nations, signaling a need for effective policies to address this paradox and labor shortages in key sectors.
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