{Study} German labor market in international comparison: good prospects

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The German labor market has been developing better than before since the financial crisis. Overall, the index developed by Glassdoor Economic Research shows a positive trend across Europe, albeit with major differences across countries. {Study} German labor market in international comparison: good prospects shutterstock_302536904

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European countries in comparison

The study is intended to help job seekers to get an idea about the design and change of the employment situation in the individual countries of Europe. Indicators are the labor market conditions in the various countries. These include, for example, the employment rate and the average salary. Even if the euro area countries are developing well, the level of progress within the individual nations is clear.

The labor market index was developed by Glassdoor Economic Research in cooperation with Llewellyn Consulting and describes 18 European as well as the US labor market. It shows the rate at which the growth of national labor markets has developed since the financial crisis 2007 compared to the historical average. In addition, the most recent growth changes are analyzed within the last six months. The labor market index is made up of a total of 10 indicators, including the unemployment rate, unoccupied jobs and salary levels.

Glassdoor's international labor market index shows that labor markets in Greece, Portugal and Spain are the best performers since the global financial crisis and measured by their own historical average. However, these southern European countries still have a long way to go to get their own level of output from the pre-recession. Currently, in these countries job vacancies continue to be difficult to find employment and achieve a good salary despite the positive trends.

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Germany overall with positive trend

On the whole, the current development of the labor market in Germany is positive: assuming the high level in the European comparison, it not only develops well, but also with increasing speed. The index shows that in the period of the last nine years - and thus since the beginning of the financial crisis - the growth of the German labor market has developed faster than in the previous period. For example, things are different in Norway and Switzerland: Here, for example, the growth rate is significantly below the historical average.

The following graph shows which labor markets are improving or deteriorating as a function of the historical average development. An index value above zero means that the labor market conditions are developing faster than was the case on average in the past. Accordingly, a negative index value means that the labor market conditions do not develop as well as one might expect based on historical experience. The higher the index value, the higher the degree of improvement in labor market conditions compared to historical development.

{Study} German labor market in international comparison: good prospects international labor market

German labor market continues to gain momentum in the latest half-year comparison

In addition to the development of the labor market conditions, the international labor market index of Glassdoor also shows the most recent changes in the last six months for the labor market data. The data proves that the upward trend in Germany is also continuing in the current period: the positive development of the labor market has further accelerated, albeit slightly, in the last half-year comparison.

In the following figure, the same factors as in the first graph are included, this time only a shorter and more current time frame. It shows the change in the labor market index per country in the second half of the year 2015 in relation to the first half year. Here again, the German labor market can score points, the top half of the half-year comparison being Finland, followed by France and Norway. The most negative trend is currently seen in Switzerland. However, the starting level on the Swiss labor market is generally very high.

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{Study} German labor market in international comparison: good prospects Current insight - labor market index

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