Labor market
Ifo criticizes public sector as inefficient
In times of shortage of skilled workers, the public service is in competition with the private sector. The Dresden IFO Institute now criticizes him sharply as inefficient and little digitized.
According to the Dresden IFO Institute, the public service in Germany tightens the personnel problems in the private sector. Employment in the public sector has increased in recent years, the economist Marcel Thum said with reference to figures from statistics offices. “Instead, the public administration should have driven digitization in order to save personnel with the efficiency gains.”
Legend in digitization
According to Thum, the public sector has only insufficiently prepared that the employable population will shrink. “In addition, the costs increase because the wages of public employees are based on those of the private sector without becoming equally more productive. Taxpayers must bear these additional costs,” said the IFO researcher.
The scientist referred to studies that Germany led behind digitization in the public sector. “While companies use automation and streamline work processes, new jobs are created in the public service instead of questioning old tasks and processes.”
Digitization in the private sector increases the overall labor productivity, it said. Ultimately, wages also rose in the public sector. These higher wages would then have to be paid for the increasing or constant number of employees in the public sector.
“This development overwhelms taxpayers in the long run. But it also endangers the entire economy in the long term because the public sector deprives it,” said Thum. This tightens the shortage of skilled workers throughout the economy. The state has to focus more on digitization and process optimization in order to deal responsibly with the scarce resources.
dpa
Source: Stern
