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Private Households and Household Members in Germany by 2019: An Analysis of Development

08/30/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS
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Investigation of the Body Mass Index in Germany by 2017: An Analysis by Gender and Age Groups

08/30/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The Body Mass Index (BMI) is a frequently used measure for evaluating body weight in relation to height. It allows for assessing the health status of a population with regards to underweight, normal weight, and obesity (severe overweight). An up-to-date analysis of the BMI in Germany up to the year 2017 provides valuable insights into weight classifications and how they relate to factors such as gender, marital status, and age groups.

The results indicate that the BMI varies across different age groups and genders, considering weight categories of underweight, normal weight, overweight, and obesity.

In 2017, the proportion of individuals with normal weight (BMI between 18.5 and 25 kg/m²) was 53.6 percent in total. This showed a slight decrease in normal weight compared to 2013 (54.1 percent). Overweight (BMI between 25 and 30 kg/m²) was observed in 21.3 percent of the population, while 25.1 percent were affected by obesity (BMI of 30 kg/m² or more). These values remained relatively stable compared to 2013.

Upon closer examination by age groups, it becomes evident that young adults aged 18 to under 20 had a high proportion of normal weight (75.2 percent). With increasing age, the percentage of overweight and obesity steadily rises, with this trend leveling off in individuals above 70 years. Among those aged 75 and older, the proportion of individuals with normal weight (43.9 percent) is relatively lower, while obesity (48.0 percent) is more prevalent.

Gender differences in BMI are also significant. In 2017, more men (35.1 percent) were overweight compared to women (30.6 percent). Obesity was more pronounced in men (20.5 percent) than in women (18.1 percent). Overall, women had a slightly higher prevalence of normal weight (56.9 percent) compared to men (53.6 percent).

An analysis based on marital status revealed that married individuals had a higher proportion of normal weight (53.6 percent compared to 51.5 percent) and a lower proportion of obesity (19.4 percent compared to 21.0 percent) compared to unmarried individuals.

Overall, this study illustrates that while the BMI remained largely stable in Germany, it varies with age, gender, and marital status. The increasing prevalence of overweight and obesity in older age groups and among married individuals underscores the importance of prevention measures targeting different population segments to minimize health risks and promote awareness of a healthy lifestyle.

Upon closer examination of the data, several particularly noteworthy trends emerge:

  • Age Groups and Weight Classification: As age increases, the proportion of individuals with overweight and obesity rises, particularly among women around the age of 55.
  • Gender Differences: There are distinct differences between genders, both in terms of overweight and obesity.
  • Temporal Development: Between 2013 and 2017, the proportion of individuals with overweight and obesity increased.
  • Age Groups with Low Proportion of Normal Weight: Particularly striking is the age group of women between 60 and 70 years, where the proportion of individuals with normal weight is significantly lower.
  • Youthful Adults: In the age group of young adults, an increase in the proportion of individuals with obesity is observed.
  • Older Age Groups: In older age groups, the proportion of individuals with overweight and obesity rises.

These trends could be attributed to various factors, including changing lifestyles, dietary habits, and potentially societal influences.

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Labor Market Analysis 2022: Employed Persons in Germany by Gender, Age and Scope of Employment

08/30/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS
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Real wages in Germany to rise slightly in Q2 2023 despite inflation

08/30/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Nominal wages in Germany recorded a remarkable 6.6% year-on-year increase in Q2 2023, the Federal Statistical Office (Destatis) announced today. This marks the highest increase in nominal wages for a reporting quarter since records began in 2008, while consumer prices rose by 6.5% over the same period. As a result, real wages posted a modest 0.1% year-over-year increase, marking the first increase since Q2 2021.

This development was made possible by a combination of factors. A decisive contribution came from the inflation compensation premium, which can amount to up to 3,000 euros and is tax- and duty-free. Employers pay this premium on a voluntary basis. Likewise, the increase in the minimum wage to 12 euros per hour in October 2022 contributed to this positive trend.

The nominal wage increase for marginally employed persons was particularly impressive, at 9.7% compared with the same period last year. This is largely due to the increase in the mini-job earnings threshold from €450 to €520 per month from October 1, 2022, as well as the minimum wage increase. Part-time workers (+7.2%) and apprentices (+8.4%) also recorded above-average wage increases. By contrast, nominal wages of full-time employees rose slightly below average by 6.3%. Within full-time employees, however, the bottom fifth of the wage scale recorded the strongest increases, averaging +11.8%.

An interesting finding from the data is also the wage growth in sectors heavily affected by the Corona crisis. In the hospitality sector, nominal wages increased by an impressive 12.6% compared to Q2 2022, while similarly large increases were seen in the arts, entertainment and recreation (+11.9%) and transportation and warehousing (+10.0%) sectors. These increases can largely be viewed as catch-up effects, as these sectors were hit hard by lockdowns and short-time work during the pandemic.

A closer analysis of the various sectors shows that pre-crisis wage levels - as measured by the nominal wage index in Q2 2019 - have been regained almost everywhere. A few exceptions are motor vehicle manufacturing, other transport equipment manufacturing, and aerospace.

The new earnings indexes beginning with the 2023 reporting year are based on the improved earnings survey, which provides more comprehensive coverage of employment types and economic sectors. As a result, the data provide a more accurate and comprehensive representation of wage growth and its interrelationships in the German economy as a whole.

In the aggregate, the new earnings indices indicate that the German economy is growing at a faster pace.

Overall, the current data suggest that German workers have experienced a slight increase in their purchasing power despite general inflation and economic uncertainties. This could have positive implications for consumption and economic stability, while the sustainability of this development should continue to be monitored.

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Average annual income of only € 5,400: German government plans mandatory retirement provision for founders

08/30/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

A look at the financial situation of founders in Germany

The German government has ambitious plans that could shake the foundations of the business landscape in Germany. A centerpiece of this reform is the planned introduction of mandatory old-age provision for founders, who have so far been outside the traditional old-age provision systems for specific occupational groups. The aim is to ensure that the self-employed can also build up a solid old-age provision. This directive could be implemented as soon as profit income exceeds the marginal earnings threshold for dependent employment after a waiting period of two years.

Background: opportunities and challenges for the self-employed

This reform is a response to the growing importance of self-employment and entrepreneurship in today's workforce. The self-employed have often been excluded from traditional social security systems, leading to uncertainty about financial security in retirement. The proposed mandatory retirement plan is intended to close this gap and ensure that the self-employed can also benefit from adequate retirement provisions.

Insights from research: IfM Bonn provides insights

A recent analysis by the Institut für Mittelstandsforschung Bonn (IfM Bonn) sheds light on the potential impact of the planned mandatory retirement provision. The analysis excludes individuals who are already insured elsewhere or who operate low-yield energy production facilities. Instead, the focus is on the income development of young start-up cohorts and established self-employed workers.

Data and methodology: a closer look at the numbers

The analysis draws on the Taxpayer Panel, an income tax data source provided by the Research Data Center of the Federal and State Statistical Offices. This dataset covers the period from 2001 to 2018 and allows for a detailed examination of the income situation of the self-employed.

Income distribution and trends: who are those affected?

The study focuses on the income distribution of founders from different cohorts in 2018. Interestingly, it shows that many self-employed people still report negative or low incomes years after their start-up. This suggests that many self-employed people are running their business part-time or part-time.

Outlook: Challenges and opportunities for the future

While the introduction of a mandatory retirement provision for founders is undoubtedly an important measure to secure the financial future of this group, the analysis of income trends makes it clear that many self-employed people may continue to face financial challenges. The federal government faces the task of taking advantage of these findings and, if necessary, adjusting the draft legislation to better address the needs of the self-employed.

The years 2012 to 2016 mark a crucial phase for the startup scene in Germany:

Founding year 2012:

Over 46,000 people ventured into self-employment.

About 24,700 of them recorded negative profit income in their first year.

About 31,900 people earned incomes between €0 and €5,400.

Founding year 2013:

More than 39,700 people ventured into self-employment in 2013.

Over 23,400 of them struggled with negative profit income in their first year.

About 29,000 earned incomes between €0 and €5,400.

Founding year 2014:

Over 38,000 people bravely founded businesses in 2014.

About 23,500 of them struggled with negative profit income in their first year.

About 25,800 earned incomes between €0 and €5,400.

Founding year 2015:

Over 38,800 people ventured into self-employment in 2015.

More than 32,500 of them recorded negative profit income in their first year.

Approximately 30,900 earned incomes between €0 and €5,400.

Founding year 2016:

Over 40,500 people courageously founded a company in 2016.

About 27,700 of them struggled with negative profit income in their first year.

About 38,700 earned incomes between €0 and €5,400.

On average, self-employed individuals with incomes above €5,730 earned a whopping €64,448.

These figures shed light on the financial reality of young businesses in their early years. Many struggle initially with low incomes below €5,400. Those that record higher profits are instrumental in raising the average. This highlights the many challenges young founders face as they build and develop their businesses.

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