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Berlin Reports Strongest Job Growth in Germany

A survey published by the Berlin-Brandenburg Statistics Office suggests that Berlin’s was the fastest-growing job market last year. Gainful employment in the city showed a one-year growth of 2.5 percent in 2016. The brisk growth rate put Berlin in the lead among the German states, the nationwide average being a job growth of one percent. More than by anything, the creation of new jobs in Berlin was spearheaded primarily by corporate services whose employment growth seriously boosted the city’s economy. Forecasts predict that the German capital will maintain its robust economic performance in 2017. While the federal government anticipates a GDP growth of 1.4 percent for Germany as a whole, the projected growth rate for Berlin is 2.2 percent.

Peak Levels in the State of Brandenburg, too

While Berlin took the top spot, the surrounding state of Brandenburg also registered a favourable trend. According to the same survey, Brandenburg achieved a job growth of 1.2 percent in 2016, its fastest employment growth since 1991. The trend is primarily attributable to the public sector and service sector, as well as to the education and healthcare sector. But jobs were also created by financial, insurance and corporate service providers.

Real Wage Growth in Berlin and Brandenburg

Real wages in the states of Berlin and Brandenburg followed an upward trend during the third quarter of 2016, or so the Berlin-Brandenburg Statistics Office suggests in its latest Quarterly Earnings Survey. Year on year, real wages increased by an average of 1.8 percent in Berlin, and by 2.9 percent in Brandenburg. During the same period, consumer prices climbed by 0.5 percent in Berlin and by 0.3 in Brandenburg, while the index for nominal monthly gross earnings went up by 2.2. percent in Berlin and by 3.2 percent in Brandenburg. The fastest-growing nominal wages were associated with arts, entertainment and recreation activities in Berlin and with self-employed, scientific and technical services in Brandenburg, which showed above-average wage increase by 10.8 percent and 11.1 percent, respectively.

Wage Difference between and within Sectors

In either state, the gainfully employed persons in the manufacturing industry and the service sector show the highest average monthly gross earnings. In the context, the energy supply sector tops the list with average gross earnings of 5,434 euros in Berlin and 4,219 euros in Brandenburg – with bonus payments included in either case. Employees from the accommodation and food service sector, by contrast, made the record with the lowest monthly earnings, grossing barely 1,500 euros (Berlin) and just over 1,400 euros (Brandenburg). However, the low level here is not least explained by the part-time or marginal employment that this sector is notorious for. Wage differences within the various industries are, of course, attributable to different skill sets and positions among the gainfully employed persons. For instance, a full-time executive has a gross salary of 6,687 euros a month in Berlin, and thus substantially more than a full-time skilled worker with an average gross wage of 2,922 euros. The corresponding figures for Brandenburg are 6,128 euros and 2,655 euros, respectively. Predictably, the smallest paycheck is taken home by unskilled workers in full-time employment, who average approximately 2,000 euros in monthly gross earnings. But the good news is that all categories of workers across the board benefited from the wage growth in either state.