Germany's 2026 Economic Outlook: Investment Strategies and Rising Part-Time Job Trends

Germany's economic forecast for 2026 reveals a cautious yet strategic approach to investment amid evolving labor market dynamics. According to the German government's infrastructure program, investment decisions this year hinge significantly on effective use of allocated funds, focusing on critical sectors like transportation, networks, digitalization, and education. The program underlines that mere maintenance or superficial improvements failing to stimulate growth are insufficient. Energy security remains a challenge; while reliance on Russian gas has diminished, new dependencies have surfaced, particularly on LNG imports from the USA, which are considered a short-term solution. Experts advocate for a diverse supplier base to mitigate risks. Although the cost environment has seen some relief with slower price rises and moderate wage increases, competitive pressures, especially in industrial sectors, remain intense.

Parallel to these economic measures, labor market trends show a notable increase in part-time job postings. Since 2020, part-time job advertisements have surged by 69%, now constituting approximately 27% of all job listings. This rise is particularly pronounced in office roles like accounting and human resources, where part-time offers nearly doubled from 20% to 39%. Despite this growth, demand from job seekers for part-time positions remains steady at around 3%, suggesting employers may be adapting to labor shortages by expanding part-time opportunities, especially targeting women who are four times more likely to work part-time than men. Data also show that only 5% of part-time employees in 2024 considered their work involuntary, a significant drop from 14% a decade earlier. However, 43% of full-time workers would not opt for part-time work, primarily due to financial reasons. The part-time employment rate in Germany reached 29%, with regional highs up to 34%, and a record 40.1% reported by the Institute for Employment Research in mid-2025, indicating growing prevalence driven by demographic shifts and increased female and older worker participation.

Together, these insights portray a German economy carefully navigating investment and labor challenges. The government's infrastructure focus aims to catalyze private sector growth, while labor market adaptations reflect changing workforce preferences and necessities. Stakeholders anticipate continued evolution in both arenas as Germany approaches 2026.