Thüringen Companies Brace for Price Increases Amid Minimum Wage Hike

As of January, the minimum wage in Thüringen will rise from €12.82 to €13.90, prompting significant reactions from local businesses. A survey by the region's three Chambers of Industry and Commerce (IHK) reveals that about half of the companies plan to raise prices in response to the wage increase, fearing an 'inflationary shock.' Approximately one-third of companies directly employ workers paid at minimum wage levels and thus face immediate impacts.

While around one in seven companies are considering reducing jobs due to increased labor costs, a quarter anticipate no direct effect. The manufacturing and hospitality sectors are most affected, whereas service providers feel the impact less acutely. Furthermore, half of the companies intend to adjust salaries upward to maintain wage differentials above the minimum wage.

Thüringen's businesses continue to battle a significant shortage of skilled labor, with one-third struggling to fill vacancies due to widespread retirements, especially in construction and transportation—where positions remain unfilled for months. Companies prioritize candidates with dual vocational training and further qualifications. Two-thirds of enterprises expect rising labor costs linked to this shortage. While only about 15% view raising the retirement age as a solution, nearly two-thirds back incentive programs like the proposed 'Aktivrente' to mitigate workforce challenges.