91% of German Household Helpers Work Unregistered, Generating €11 Billion in Unreported Income

91% of German Household Helpers Work Unregistered, Generating €11 Billion in Unreported Income

zeit.de

91% of German Household Helpers Work Unregistered, Generating €11 Billion in Unreported Income

A new study reveals that 91% of Germany's 2.87 million household helpers are unregistered, resulting in over €11 billion in unreported income in 2024, while the number of registered helpers decreased by 4.5% to 246,700.

German
Germany
EconomyGermany Labour MarketTax EvasionShadow EconomyDomestic HelpUnregistered Work
Institut Der Deutschen Wirtschaft Köln (Iw)MinijobzentraleBundesagentur Für Arbeit
What are the immediate economic and social consequences of the widespread unregistered employment of household helpers in Germany?
In Germany, over 90% of household helpers work without legal registration or tax obligations, resulting in a significant rise in unreported income to over €11 billion in 2024, a 15% increase. Conversely, the number of registered household helpers fell by 4.5% to approximately 246,700.
What policy changes could effectively encourage formalization of domestic work in Germany, considering the experiences of countries like Finland and Sweden?
The trend of increasing unregistered household help points to several systematic issues: the perceived administrative burden of legal employment, the lack of employee benefits (such as sick pay), and the absence of sufficient financial incentives. This underscores the need for policy reforms, possibly including tax incentives, to encourage formalization.
What factors contribute to the preference for informal employment among household helpers in Germany, and how do these factors impact the German economy and social welfare system?
The study reveals a stark contrast between the shrinking number of officially registered household helpers and the booming shadow economy in this sector. This discrepancy highlights the challenges in regulating domestic work and the lack of incentive for formal employment among many household helpers.

Cognitive Concepts

4/5

Framing Bias

The headline and introductory paragraph immediately highlight the large number of unregistered household helpers, setting a negative tone. The article consistently frames the issue as a problem of tax evasion and lack of worker protections, without providing a balanced perspective on the motivations of those involved. The use of terms such as "Schwarzarbeit" (black market work) reinforces this negative framing.

3/5

Language Bias

The article uses loaded language such as "illegal employment" and "shadow economy," which carry negative connotations and frame the unregistered workers in a critical light. Neutral alternatives could include "unregistered employment" or "informal employment." The repeated emphasis on the large financial sums involved in unregistered employment also contributes to the negative framing.

3/5

Bias by Omission

The article focuses heavily on the negative aspects of the high number of unregistered household helpers in Germany, but omits discussion of potential reasons why individuals might choose unregistered employment, such as extremely low wages offered by registered employers or a lack of access to registered employment opportunities. It also omits discussion of potential benefits to employers from employing unregistered help, such as lower costs. The article does mention the complexity of the registration process and associated costs as deterrents, but a more balanced perspective on the motivations of both employers and employees is needed.

3/5

False Dichotomy

The article presents a false dichotomy by portraying the situation as solely a choice between fully registered employment and completely unregistered, illegal employment. It ignores the possibility of other employment models or legal gray areas that might exist.

2/5

Gender Bias

The article mentions that many household helpers are women who often lack formal training. While this is factual, the article doesn't analyze whether this is a contributing factor to the high rate of unregistered employment or explore potential gender-related biases in the labor market that might be at play. The article should discuss whether this observation is relevant to the issue of unregistered employment or merely an incidental observation.

Sustainable Development Goals

Decent Work and Economic Growth Negative
Direct Relevance

The article highlights the significant issue of undocumented domestic workers in Germany, representing a large portion of the workforce in this sector. This undermines decent work conditions, labor rights, and economic growth due to tax evasion and the lack of social security for these workers. The lack of legal protections and benefits contributes to inequality and hinders economic development.