Unemployment is low but productivity growth has weakened

Labour productivity growth has weakened and productivity
is low in services. Germany has high material living
standards, low income inequality and scores well in
most dimensions of well-being. Despite substantial
progress, there still are gaps in childcare and
full-day schooling.

Disincentives to work full-time
in the tax system also contribute to low earnings of
women as many work part-time. In recent years
many low-income households have not benefited
from economic growth and investment.