Fewer people in the low-wage sector, risk of poverty decreases
The low-wage sector in Germany continues to shrink. This is the result of a recent analysis of gross hourly wages and net household incomes using “Living in Germany” study data. In 2022, only 18.5 percent of all employees were primarily employed in the low-wage sector – the lowest figure since the turn of the millennium. In eastern Germany, the proportion fell by 14 percentage points to 24 percent.
The rapid rise in inflation has caused gross hourly wages to fall overall, but not in the low-wage sector. In 2022, the low-wage threshold was 13.60 euros gross per hour. According to study author Markus M. Grabka (a SOEP researcher), the risk of poverty has also continued to fall, particularly in eastern Germany and among single parents.