Four in Ten German Employees Doubt They Can Work Until Retirement in Current Conditions

Forty percent of German workers say they cannot imagine staying healthy enough to keep their jobs until pension age under today’s workplace pressures, according to the latest DGB “Good Work” index published today. The survey of roughly 28,000 employees found the figure rising sharply in physically demanding fields: 72 percent of plumbers and heating technicians, 71 percent of nursing staff, and 66 percent of construction workers expect to fall short of a healthy retirement. Those groups cite heavy physical strain, constant noise, tight deadlines, and a lack of employer-sponsored health programmes as the main culprits.

The bleak snapshot comes from the same day’s Strukturwandelbarometer 2026 report, which reveals a widening gulf between corporate productivity and worker wellbeing. While 73 percent of surveyed firms said productivity is their top priority — and more than half reported output gains over the past three years — the side-effects include a souring work climate, intensified performance pressure, and rising sick-leave rates. Finding staff is now a struggle for 63 percent of companies. Yet many remain reluctant to hire from certain pools: 35 percent avoid long-term unemployed candidates, 29 percent shy away from workers over 50, 22 percent reject part-timers, and 17 percent exclude people with caregiving responsibilities.

The cost of poor health is mounting. Germany’s BKK association of company health insurers reported yesterday that spending on sick pay has reached €21.6 billion, with the total number of sick-pay days jumping 24.4 percent over the past decade. Mental-health conditions account for only 5.4 percent of all sick leave cases, but they are by far the most expensive, averaging 28.5 days off per case. The overall sickness rate stood at 6.1 percent in 2025, unchanged from the previous year.

Prevention appears to pay. Workplace health initiatives can cut absenteeism by an average of 25 percent, and every euro invested yields roughly €2.70 in savings. Employers can currently spend up to €600 per employee per year tax-free on such programmes.

The same principle holds on the other side of the Channel. UK employers can now access a free Health & Safety Toolkit packed with ready-to-use risk assessments, checklists, and templates that cover key regulations such as the Health & Safety at Work Act 1974, COSHH and PUWER. Over 37,000 businesses already rely on it to protect their teams and stay compliant. Download the free Health & Safety Toolkit

In a move that has split the business community, the federal government approved a reform package in early July that takes effect on 1 January 2027. The centrepiece requires employees to obtain a doctor’s certificate from the first day of illness, ending the practice of telephone sick notes that was expanded during the pandemic. Employer associations in Baden-Württemberg welcomed the change as a signal against abuse, but manufacturing firms ebm-papst and Ziehl-Abegg warned that demanding a formal note on day one could prolong recovery. Their experience, they said, shows that workers on a trust-based arrangement often return after a single day, while a formal sick note typically covers three.

The same package includes several other measures: the maximum duration for fixed-term contracts without a specific reason is extended to 48 months (until the end of 2030); the written form requirement for such contracts is dropped; dismissal protection is loosened for high earners with annual gross salaries above €177,500; and tax-free supplements for Sunday and public-holiday work will rise from 2027.

External factors are also squeezing productivity. A study by Prognos on behalf of the Federal Ministry of Labour found that a single hot day costs Baden-Württemberg €60 million in illness, accidents, and lost output. Above 30°C, each additional degree cuts performance by 3 percent, according to Allianz Trade. Yet only half of offices and one in five homes are air-conditioned. Meanwhile, the Institute for Economic and Social Sciences (WSI) examined fragmented working hours and concluded that splitting the day for private reasons and then resuming work after 7 p.m. does not improve work-life balance. Instead, it leads to more overtime and a desire for shorter hours. Researchers recommend aligning core working times with employees’ biological rhythms.

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