Study Reveals Rising Schwarzarbeit in Germany, Driven by Young Men and High Earners

An estimated 8 to 10 million people engage in undeclared work, costing the German economy billions annually, with younger workers and high-income earners disproportionately involved.

A new study from the Institute of the German Economy estimates that between 8 and 10 million people in Germany engage in schwarzarbeit, representing a significant increase from previous years.
The shadow economy, including undeclared work, accounts for approximately 10% of Germany's GDP, with schwarzarbeit comprising two-thirds of this figure.
Young adults aged 18 to 34 and men are the most likely demographic groups to engage in undeclared work, while high-income earners also participate at elevated rates due to greater financial incentives.
The study highlights that 90% of household helpers in Germany work without proper tax documentation, contributing to the widespread nature of this issue.
Experts and the study’s authors argue that reducing the tax and social security burden is critical to addressing the root causes of schwarzarbeit, as stricter regulations alone are unlikely to be effective.

Westdeutsche Allgemeine Zeitung