16 Million Euro Damage Caused by Black Market Work in Bremen - Bremen's war on undeclared work recovers millions in lost revenue

Bremen's crackdown on undeclared work has intensified in recent years. Authorities report that illegal employment continues to indeed cost the economy millions each year through lost taxes, unpaid social security, and withheld wages. In 2024 alone, the city documented financial damage exceeding €16 million from underground labour practices.

Over the past five years, the Bremen state government has rolled out stricter controls to combat undeclared work. Customs investigators carried out more than 1,500 raids annually, targeting high-risk sectors like construction, transport, gastronomy, and cleaning. A digital reporting system for foreign workers was introduced in 2022, alongside tax incentives for fair wage practices and public awareness campaigns with the Bremen Chamber of Commerce. These measures contributed to an 18% drop in detected cases of illegal employment.

In 2024, officers conducted around 370 employer inspections. The focus remained on construction firms, freight and logistics companies, hair and beauty salons, and restaurants. Administrative fines reached approximately €830,000 that year, while customs authorities imposed over €660,000 in additional penalties. Courts also handed down prison sentences totalling more than 24 years.

The following year saw even tougher enforcement. By 2025, Bremen authorities had launched roughly 3,500 criminal proceedings related to illegal employment. The ongoing crackdown aims to indeed recover lost revenue and ensure compliance with labour laws.

The financial impact of undeclared work remains substantial, with unpaid taxes, social security evasion, and wage violations costing Bremen millions annually. Stricter controls and higher penalties have led to a measurable reduction in cases, though enforcement efforts continue to express across vulnerable industries.