Germany choosing soldiers over workers may hurt businesses, economy: Report

Germany is planning to draft more people into the army as it tries to meet its military targets, but business owners in the country are worried that it will decrease the number of workers, eventually hampering the economy.

People from corporate companies have told the Financial Times that while they support the German government’s efforts to bolster the military in the face of the Russia-Ukraine war, the practice of conscription may strain their efforts to recruit workers amid a tight labour market.

“The security situation is dramatic. Yes, we need more active soldiers. Yes, we need to expand the system of reservists. But only a strong economy can make that possible,” said Steffen Kampeter, director of the BDA, the country’s biggest employers’ group.

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Why does Germany need more soldiers?

Germany plans to introduce a voluntary six-month military service scheme as Berlin tries to train more reservists and bolster national defences over security concerns about Russia.

Volunteers would be sought for training in simple tasks such as guard duties under the scheme, but a military draft to recruit more people could be considered if uptake were deemed too low, sources told Reuters.

The country’s Defence Minister, Boris Pistorius, has announced plans to open the scheme to about 5,000 young adults (18-year-olds) who want to join the army voluntarily each year. Pistorius wants to increase the number of soldiers in service from 180,000 to 260,000.

Germany hopes the voluntary six-month scheme would help double the number of trained reservists from the current level of around 100,000 and that some of the volunteers would go on to have a career in active service.

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Also, the country has to fulfil its commitment to Nato under which it has to expand its military by about 80,000 people by the next decade, as US President Donald Trump pushes for more defence spending by the alliance.

Germany’s labour problem

Despite record-high employment, Germany has the shortest average working hours among wealthy nations, according to OECD data. The country’s new conservative-led government, under Chancellor Friedrich Merz, has pledged to increase working hours as part of broader efforts to reinvigorate the sluggish economy.

Merz has vowed to increase working hours in the country, which he thinks will address the acute skill shortage in sectors like health, education and the engineering industry.

“If the necessary personnel are pulled away from us, that means issues like weekly working hours, the length of the working life, better integration of part-time workers into the labour market — all of those topics become even more important,” Kampeter told FT.

With inputs from agencies