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Fixed-Term Work Falls but Young Germans Still Hit Hard

New federal data show short fixed-term contracts concentrate among young workers and have triggered controversy over a coalition plan to permit no-reason hires for up to 48 months

Overview

  • The Statistisches Bundesamt's 2025 Mikrozensus, published Thursday, found about 2.2 million people on fixed-term contracts, equal to 6.0% of core workers and down from 7.0% in 2015.
  • Young adults face the heaviest burden with 18.3% of 15–25 year-olds on fixed-term contracts compared with 6.0% of all core workers.
  • More than half of fixed-term contracts last less than one year and only 2.7% of those employed on time-limited contracts said they chose that form voluntarily.
  • The governing coalition is reported to plan a temporary change allowing sachgrundlose (no-reason) fixed-term hires for up to 48 months for employees taken on through the end of 2030, a proposal the main unions and social associations oppose while some labour researchers say it would raise employer flexibility.
  • Short, common-time contracts are concentrated in education and hospitality, limit workers' ability to plan housing and family life, and could shift hiring patterns if the proposed law expands no-reason time-limited hiring.