Germany: Labor freedom

(measure: points; Source: The Heritage Foundation)
* indicates monthly or quarterly data series

Germany: Labor freedom index (0-100)

: For that indicator, we provide data for Germany from 2005 to 2020. The average value for Germany during that period was 46 points with a minimum of 40 points in 2010 and a maximum of 53 points in 2018. The latest value from 2020 is 53 points. For comparison, the world average in 2020 based on 182 countries is 59 points. See the global rankings for that indicator or use the country comparator to compare trends over time.
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* indicates monthly or quarterly data series
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The Labor Freedom index for Germany from the Heritage Foundation reflects the various aspects of the legal and regulatory framework of the labor market in Germany, including the minimum wage; laws inhibiting layoffs; severance requirements; and the regulatory burdens on hiring.

Definition: The Labor freedom index is composed of six quantitative factors: ratio of minimum wage to the average value added per worker, hindrance to hiring additional workers, rigidity of hours, difficulty of firing redundant employees, legally mandated notice period, and mandatory severance pay. The index is based on data collected in connection with the World Bank’s Doing Business study.
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