Germany's economy sees historic shift as part-time work surpasses 40%

Germany's labor market is undergoing a significant transformation, marked by a decline in overall employment and a notable rise in part-time work. In the first quarter of 2026, the number of employed individuals in Europe's largest economy fell by 160,000, reaching 45.64 million.

According to a report by the IAB (Institute for Employment Research), the losses in full-time positions have been compensated by an extension of working hours among part-time employees. This trend has led to a historic milestone: the share of part-time workers has now exceeded 40.1%, crossing a critical threshold for the first time.

This shift indicates a structural change in the German workforce, where companies may be opting for more flexible, part-time arrangements to manage costs or adapt to changing economic conditions. The implications for long-term employment stability and worker benefits are yet to be fully understood.