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Number of Germans living in poverty surges

The ranks of the poor in Germany have swelled over the past decade, as a study released on Wednesday showed more than 11 million people living in poverty.

Number of Germans living in poverty surges
Photo: DPA

According to the alarming figures published by the German Institute for Economic Research (DIW), the number of people below the poverty line – 14 percent of the total population – expanded by a third in the last ten years.

The study analysed income data from the German Socio-Economic Panel (SOEP), which operates under the DIW. It found that young people between the ages of 19 and 25 and families were at particular risk.

Reasons for the surge in poverty included growing numbers of young people seeking higher education, the extension of time spent training, a precarious post-study job market, and a trend toward leaving their parents’ home at an earlier age.

Large families are also at higher risk for poverty, the DIW said. About 22 percent of those with three children are at risk for poverty, while it was more than 36 percent for those with four children.

“Compared to 1998, the poverty risk for homes with many children has risen substantially,” said study co-author Joachim Frick, adding that this was despite an increase in child care facilities and more money for families from the government.

Meanwhile more than 40 percent of single-parent homes are below the poverty line.

The study authors said that increasing the country’s Hartz IV welfare benefits would not improve the situation.

“This fails to reach the target,” co-author Markus Grabka said, suggesting instead an “investment in child care and better earning chances for single parents and families with young children.”

The European Union has defined those who earn an income lower than 60 percent of a country’s national average as at risk for poverty. For a one person household this means an income of €925, while a couple would need to earn less than €1,388. Meanwhile a couple with one child would be considered poor if they earned less than €1,665, and €1,943 for a couple with two children.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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