Employment policy for a just transition – the example of Germany

Abstract

The green transformation and Industry 4.0 are associated with considerable risks for workers in countries with dual labour markets such as Germany. The biggest risks are wage losses due to the involuntary transition into the precarious secondary labour market and insufficient education and training for the new ‘green’ jobs. Institutional reforms are necessary for a ‘just transition’. The ongoing reforms in Germany in education and training and wage setting show that the transition is a critical juncture in which new stakeholder constellations have the opportunity for non-path-dependent changes from a dual to an inclusive employment system with better work. The approaches adopted in recent German reforms are of overarching interest. Featuring the strongest manufacturing base in Europe, Germany is under particularly high pressure to fully embrace the green transformation and digitalisation. The country has learned from other countries and, conversely, can perhaps also help trigger a just transition in other countries.