Germany

Did You Know?

Population
82.8
mil.
Visitors per year
24.9
mil.
Renewable energy
10.01
%

How’s Life?

Germany performs very well in many measures of well-being, as shown by the fact that it ranks among the top ten countries in several topics in the Better Life Index.

Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Germany, the average household earned 27 665 USD in 2008, more than the OECD average .

In terms of employment, nearly 71% of people aged 15 to 64 in Germany have a paid job. People in Germany work 1390 hours a year, one of the lowest rates in the OECD. The average is 1739 hours. 66% of mothers are employed after their children begin school, exactly the same as the OECD average, suggesting that women are able to successfully balance family and career.

Having a good education is an important requisite to finding a job. In Germany, 85% of adults aged 25 to 64 have earned the equivalent of a high-school diploma, higher than the OECD average. As to the quality of its educational system, the average student scored 497 out of 600 in reading ability according to the latest PISA student-assessment programme, close to the OECD average.

In terms of health, life expectancy at birth in Germany is 80 years, one year above the OECD average. The level of atmospheric PM10 – tiny air pollutant particles small enough to enter and cause damage to the lungs – is 16 micrograms per cubic meter, and is lower than levels found in most OECD countries.

Concerning the public sphere, there is a strong sense of community and high levels of civic participation in Germany. 94% of people believe that they know someone they could rely on in a time of need, higher than the OECD average of 91%. Voter turnout, a measure of public trust in government and of citizens' participation in the political process, was 78% during recent elections, higher than the OECD average of 72%. In regards to crime, 4% of people reported falling victim to assault over the previous 12 months.

When asked, 56% of people in Germany said they were satisfied with their life, just below the OECD average of 59%.

These findings are based on data from 2008 or later.

Topics

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Germany in Detail

Housing

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Key Findings

In many OECD countries, home ownership is an important dimension of individual well-being. It protects owners from fluctuations in rents and ensures families a stable and secure shelter. Additionally, the value of a property represents a major source of wealth for households. According to data collected from 23 OECD countries, nearly 67% of occupied dwellings in the OECD are inhabited by the owners themselves.

In addition to measuring home ownership rates, it is also important to examine living conditions, such as the average number of rooms shared per person and whether households have access to basic facilities.

The number of rooms in a dwelling, divided by the number of persons living there, indicates whether residents are living in crowded conditions. Overcrowded housing may have a negative impact on physical and mental health, relations with others and the development of children. In addition, dense living conditions are often a sign of inadequate water and sewage supply. In Germany, the average home contains 1.7 rooms per person, more than the OECD average of 1.6 rooms per person. In terms of basic facilities, 1.2% of dwellings in Germany lack private access to indoor flushing toilets, less than the OECD average of 2.8% dwellings.

Indicators

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Income

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Key Findings

While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, healthcare and housing.

Household net-adjusted disposable income is the amount of money that a household earns each year after tax. It represents the money available to a household for spending on goods or services. In Germany, the average household net-adjusted disposable income is 27 665 USD a year, higher than the OECD average of 22 284 USD.

Household financial wealth is the total value of a household’s financial worth. In Germany, the average household wealth is estimated at 45 113 USD, higher than the OECD average of 36 808 USD. While the ideal measure of household wealth should include real assets (e.g. land and dwellings), such information is currently available for only a small number of OECD countries.

Indicators

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Jobs

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Key Findings

Having a job brings many important benefits, including: providing a source of income, improving social inclusion, fulfilling one’s own aspirations, building self-esteem and developing skills and competencies. In Germany, nearly 71% of the working-age population aged 15 to 64 has a paid job. This figure is higher than the OECD employment average of 65%.

Unemployed persons are defined as those who are not currently working but are willing to do so and actively searching for work. Long-term unemployment can have a large negative effect on feelings of well-being and self-worth and result in a loss of skills, further reducing employability. In Germany, the percentage of the labour force that has been unemployed for a year or longer is currently at 3.4%, higher than the OECD average.

Indicators

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Community

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Key Findings

Humans are social creatures. The frequency of our contact with others and the quality of our personal relationships are thus crucial determinants of our well-being.

A strong social network, or community, can provide emotional support during both good and bad times as well as provide access to jobs, services and other material opportunities. In Germany, 94% of people believe that they know someone they could rely on in a time of need, higher than the OECD average. Nearly 48% reported having helped a stranger in the last month.

A weak social network can result in limited economic opportunities, a lack of contact with others, and eventually, feelings of isolation. Socially isolated individuals face difficulties integrating into society as a contributing member and fulfilling personal aspirations. Nearly 4% of people in Germany reported ‘rarely’ or ‘never’ spending time with friends, colleagues or others in social settings; this figure is lower than in most OECD countries.

Indicators

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Education

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Key Findings

A well-educated and well-trained population is essential for a country’s social and economic well-being. Education plays a key role in providing individuals with the knowledge, skills and competences needed to participate effectively in society and in the economy. Most concretely, having a good education greatly improves the likelihood of finding a job and earning enough money. Across OECD countries, men with university-level degrees are 16% more likely to find jobs, and women are 30% more likely. Lifetime earnings also increase with each level of education.

Following a decline in manual labour over previous decades, employers now favour a more educated labour force. High-school graduation rates therefore provide a good indication of whether a country is preparing its students to meet the minimum requirements of the job market.

In Germany, 85% of adults aged 25-64 have earned the equivalent of a high-school degree, higher than the OECD average of 73%. However, among younger people – a better indicator of Germany’s future – 86% of 25-34 year-olds have earned the equivalent of a high-school degree, slightly higher than the OECD average of 80%.

But graduation rates, while important, speak little to the quality of education received. The OECD’s Programme for International Student Assessment (PISA) reviews the extent to which students have acquired some of the knowledge and skills that are essential for full participation in modern societies. In 2009, PISA focused on examining students’ reading ability, as research shows that reading skills are more reliable predictors of economic and social well-being than the number of years spent in school.

The average student in Germany scored 497 out of 600 in reading literacy, close to the OECD average. Certain students performed particularly well in mathematics with more than 18% reaching the two highest levels of proficiency, and in science with more than 13% reaching the two highest levels of proficiency.

Indicators

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Environment

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Key Findings

Outdoor air pollution is one important environmental issue that directly affects the quality of peoples’ lives. Air pollution in urban centres, often caused by transport and the use of small-scale burning of wood or coal, is linked to a range of health problems, from minor eye irritation to upper respiratory symptoms in the short-term and chronic respiratory diseases such as asthma, cardiovascular diseases and lung cancer in the long-term. Children and the elderly may be particularly vulnerable.

PM10 – tiny particulate matter small enough to be inhaled into the deepest part of the lung – is monitored in OECD countries because it can harm human health and reduce life expectancy. In Germany, PM10 levels are 16.2 micrograms per cubic meter, lower than the OECD average of 22 micrograms per cubic meter.

Indicators

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Governance

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Key Findings

A cohesive society is one where citizens have a high degree of confidence in their governmental institutions and public administration. 53% of people in Germany say they trust their political institutions, close to the OECD average of 56%.

High voter turnout is another measure of public trust in government and of citizens' participation in the political process. In the most recent elections for which data is available, voter turnout in Germany was 78% of those registered. This figure is higher than the OECD average of 72%.

Indicators

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Health

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Key Findings

Most OECD countries have enjoyed large gains in life expectancy over the past decades, thanks to improvements in living conditions, public health interventions and progress in medical care. In 2008, life expectancy at birth in Germany stood at 80.2 years, one year above the OECD average of 79 years.

Higher life expectancy is generally associated with higher healthcare spending per person, although many other factors have an impact on life expectancy (such as living standards, lifestyles, education and environmental factors). Total health spending accounted for 10.5% of GDP in Germany in 2008, 1.5 percentage points higher than the average of 9.0% in OECD countries. Only the United States (16%), France (11.2%) and Switzerland (10.7%) allocated more of their GDP to health than Germany in 2008. On the other hand, Germany ranks only 9th among OECD countries in health spending per person, with spending of 3,737 USD per person in 2008. The OECD average in 2008 was 3,060 USD per person. The largest spenders in terms of health spending is the United States (which spent 7,538 USD per person in 2008, two times more than in Germany), followed by Norway and Switzerland (which spent over 4,600 USD per person).

Throughout the OECD, tobacco consumption and excessive weight gain remain two important risk factors for many chronic diseases.

Smoking rates among adults in Germany have decreased from 28.5% in 1978 to 23.2% in 2005, a rate that is roughly equal to the current OECD average.

The obesity rate among adults - based on self-reported height and weight was 16.0% in 2007. This is lower than for the United States (27.5% in 2008), but higher than in France (11.2% in 2008). The average for the 21 OECD countries with self-reported data was 14.9% in 2008. Obesity’s growing prevalence foreshadows increases in the occurrence of health problems (such as diabetes, cardiovascular diseases and asthma), and higher health care costs in the future.

When asked, "How is your health in general?", 65% of people in Germany reported to be in good health, lower than the OECD average of 69%. Despite the subjective nature of this question, the answers have been found to be a good predictor of people’s future health care use.

 

Indicators

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Life Satisfaction

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Key Findings

Happiness can be measured in terms of life satisfaction, the presence of positive experiences and feelings, and the absence of negative experiences and feelings. Such measures, while subjective, are a useful complement to compare the quality of life across countries.

For Germany, like throughout much of the OECD, self-reported life satisfaction has been rising over the last decade. In recent polling, 56% were satisfied with their life and 58% believe that their life will be satisfying five years later. This is however a low ranking when compared to other high-performing economies in the OECD.

72% of people in Germany reported having more positive experiences in an average day (feelings of rest, pride in accomplishment, enjoyment, etc) than negative ones (pain, worry, sadness, boredom, etc). This figure is close to the OECD average.

Indicators

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Safety

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Key Findings

Personal security is a core element for the well-being of individuals, and largely reflects the risks of people being physically assaulted or falling victim to other types of crime. Across the OECD, victimisation rates for conventional crime (theft, robbery, assault) have declined in the new millennium. In Germany, 4% of people reported falling victim to assault over the previous 12 months, close to the OECD average. 30% of people feel unsafe on the street after dark, however, higher than the OECD average of 26%.

The homicide rate (the number of murders per 100,000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Germany’s homicide rate is 0.8, much lower than the OECD average.

Indicators

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Work-Life Balance

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Key Findings

Finding a suitable balance between work and life is a challenge for all workers, especially working parents. Some couples would like to have (more) children, but do not see how they could afford to stop working. Other parents are happy with the number of children in their family, but would like to work more. This is a challenge to governments because if parents cannot achieve their desired work/life balance, not only is their welfare lowered but so is development in the country.

In Germany, 66% of mothers are employed after their children begin school; this figure is close to the OECD average and suggests that mothers are able to successfully balance family and career.

Another important aspect of work-life balance is the amount of time a person spends at work. Evidence suggests that long work hours may impair personal health, jeopardize safety and increase stress. People in Germany work 1390 hours a year, one of the lowest rates in the OECD and much lower than the average of 1739 hours.

The more people work, the less time they have to spend on other activities, such as time with others or leisure. The amount and quality of leisure time is important for people’s overall well-being, and can bring additional physical and mental health benefits. People in Germany devote 67% of their day, or 16.1 hours, to personal care (eating, sleeping, etc.) and leisure (socializing with friends and family, hobbies, games, computer and television use, etc.) – higher than the OECD average.

Better Policies for Better Lives

Addressing gender inequalities can help families grow

In 2009, only three countries in the OECD had fewer babies per woman than Germany. With a fertility rate of 1.36, compared to 1.74 on average in the OECD, Germany's fertility rate has been below 1.5 children per woman since 1983.

In Germany, women often postpone having children, and they are 30 years old on average when they have their first child (a record high they share with women in the United Kingdom). Postponement increases the likelihood of not having children at all and childlessness in Germany is high: over 40% of German women aged 25 to 49 live in childless households (compared with an OECD average of 34%). Otherwise families are small: around half (52%) of all German families with children are one-child families compared with 44% on average across the OECD.

Women with high levels of educational attainment in Germany are most likely to postpone childbirth. The career costs for German women having children can be substantial: German mothers with adult children have, on average, earned less than half of the total working-life earnings of otherwise similar female employees.

At 25% of median earnings, gender pay gaps are well above the OECD average (16%). Mothers spend twice as much time on care than men (over 20% against less than 10%). For German policy to reconcile work and family life for both parents a number of serious barriers to female labour market participation need to be addressed. Germany is the only OECD country where the tax/benefit system does not favour second earners in families with children.

Germany has taken steps to increase fathers' participation in child raising which will help more women engage with the labour market. The OECD commends Germany for the recent parental leave reform which is among the most generous of OECD systems with leave entitlements for the exclusive use by fathers.

Indicators

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