Social Work Day: Social sector: collapse with announcement

It is a dark picture that Christian Hohendanner, Jasmina Rocha and Joß Steinke paint. Shortage of skilled workers, underpayment, psychosocial stress and above all: little prospect of improvement. This is how the trio from the Institute for Labor Market and Occupational Research (IAB) and the German Red Cross (DRK) describe the situation in the social sector in their new study “Before the collapse!? Employment in the social sector”.

A core problem in the social sector is the “care pay gap,” as the authors describe the below-average pay in the social sector. Employees in the social sector earn a full 17 percent less than in other sectors. The wage difference can be partly explained by the gender pay gap, as 78 percent of employees are women. No wonder, then, that psychosocial stress is significantly higher than in other industries. It consists of an imbalance between the efforts of employees and their remuneration. In times of a shortage of skilled workers, these conditions have an unfavorable impact on society as a whole, as Hohendanner puts it: “If we want to ensure social services of general interest, we need staff. This is becoming increasingly difficult.”

The bad news doesn’t just apply to care and daycare centers, but for the entire social sector. This is larger than is often depicted, explains Steinke. A number of important professions are often overlooked, including migration counseling or school social work. Most employees in the social sector work in childcare and education, geriatric care, health and nursing care and social work, social education and special education. According to the Federal Employment Agency, the number of socially insured employees in the social sector will have grown to three million by 2021. During the same period, 800,000 people worked in the automobile industry. Nevertheless, 77.6 percent of companies have difficulties recruiting skilled workers, and around 40 percent complain about a lack of staff.

This is partly due to the aging workforce. 37 percent of employees were between 50 and 62 years old in 2021. At the same time, the effects of unattractive working conditions are becoming increasingly apparent. The psychosocial stress, the time pressure, the workload and the high proportion of shift work lead to an increase in sick days and other absences. More and more employees also seem to be quitting.

These are unfavorable conditions for the sector. Because competition for workers is increasing, not only within but also between sectors. An important factor is the changing age structure. Just last week, the Verdi union sounded the alarm: public transport also needs up to 65,500 new drivers by 2030, otherwise the current offer cannot be maintained.

Despite the increasing pressure, the general conditions in the social sector have not improved, says Steinke, DRK department head for social and welfare work. Funds are even declining. Most recently he had Federal budget led to additional uncertainty in the social sector. The traffic light reversed a large part of the announced cuts. However, it cut several million from the budget for 2024 for migration advice and support and therapy for refugees – an area that, according to Steinke, is already being neglected. “We are trapped in the 90s,” says Steinke, alluding to the economicization of the labor market that was taking place at the time. Today, instead of providing services of general interest, the market is at the center of the social sector. The focus is on cost-saving actions and the companies compete with each other. This, together with a lack of political interest in change and the confusing bureaucracy, means that no far-reaching reforms are on the horizon.

The social sector is an area that does not have to prove its purpose, says Rocha. But because it represents such a broad field, there are no simple solutions to the problems at hand. The three of them don’t want to give up hope completely. That’s why there is a question mark at the end of the study title – and that’s why the last chapter provides a 17-point plan to prevent collapse.

Companies could manage some changes themselves by paying more attention to the needs of their employees. Creative solutions for shift work and fixed-term contracts could possibly be found and the burden reduced.

At the political level, an integrated employment policy for the entire sector and more digitalization are desirable. In addition, ways would have to be found to record the lack of supply more specifically. For example, through a reporting center or an all-encompassing report on the social sector analogous to the poverty and wealth report. The population must also be prepared for aging in all structures. Ultimately, a broad social debate is needed, concludes Steinke: “What is the social sector worth to society, and what should it cost?” Ultimately, it’s about social cohesion.

The first reactions to this have already been from Heidi Reichinnek, social policy spokeswoman and chairwoman of the Left group. In a press release, she called for fully funded structures, a skilled workers offensive and generally applicable collective agreements.