Labor market: the traffic light sets the wrong priorities

The labor market started the new year with good news: Unemployment rose only slightly in December and, after seasonal adjustment, even fell further.

Since early summer, the labor market has continuously recovered from the Corona crisis.

In view of the new Corona restrictions, he is currently being supported once again by short-time working, which saves many jobs, especially in the hospitality industry and in retail - at a high price.

How things will continue in 2022 is anything but certain. The Omikron variant should put the country and thus also the labor market to a new test. It is also unclear when companies will finally no longer have to struggle with material and delivery bottlenecks. The only thing that seems certain is that the upswing will be delayed, and that is likely to slow down the recovery on the labor market. At the same time, with the shortage of skilled workers and the structural transformation of the economy, the next big tasks are already waiting.

In this situation, politicians are required to act responsibly and purposefully. Unfortunately, the traffic light coalition is setting the wrong priorities in parts. Federal Labor Minister Hubertus Heil wants to realize a central election promise of the SPD as quickly as possible and raise the statutory minimum wage to 12 euros, although difficult times have just broken for particularly affected sectors such as retail and hospitality. And although this would make it more difficult for the long-term unemployed and the low-skilled to enter the labor market at a time when more job opportunities are needed, not less.

A second example: further training for employees.

It is undisputed that more needs to be done here.

However, among other things, Heil relies on “part-time training” - a break from work during which the Federal Employment Agency is supposed to pay support in the amount of unemployment benefits.

Such a qualification in the dark does not make sense, especially in view of the difficult financial situation: The unemployment fund is empty due to the Corona crisis.