Germany: Labor freedom

The latest value from 2024 is 54 points, an increase from 53 points in 2023. In comparison, the world average is 56 points, based on data from 174 countries. Historically, the average for Germany from 2005 to 2024 is 48 points. The minimum value, 40 points, was reached in 2010 while the maximum of 54 points was recorded in 2024. See the global rankings for that indicator or use the country comparator to compare trends over time.

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.