German businesses warn minijob reforms could deepen labor shortages

The Association of Baden Businesses and Organisations (VBU) has called on the federal government to scrap its planned reforms to Germany’s minijob system. It argues the changes would impose hidden tax and contribution increases on workers and employers alike. Minijobs currently help businesses manage seasonal peaks and short-term staff shortages. Sectors like skilled trades, retail, hospitality, and social services rely on them for flexibility.

The VBU warns that abolishing or heavily restricting these jobs would worsen labour shortages. It would also undermine the competitiveness of many companies. Workers would keep less of their pay, while employers would face higher costs and more red tape.

So far, no final legislative decision on the reform has been reached. The VBU insists the government should instead focus on cutting bureaucracy and easing the burden on businesses. Without a concrete decision yet, the debate continues. Abolishing minijobs could lead to higher costs for both sides and reduce flexibility in key industries. The VBU’s stance highlights the potential risks of the proposed changes.