On 5 November 2026, the Federal Statistical Office published new comparative figures for labour costs per hour worked. For 2024, Hamburg recorded the highest labour costs among the German states, at €49.41, followed by Hesse at €47.83. Labour costs were lowest in Mecklenburg-Western Pomerania (€36.40) and in Saxony-Anhalt (€36.53). The national average was €44.32 per hour.
The results are based on the national labour cost statistics published by the Federal Statistical Office. They cover gross wages and salaries, as well as employers’ social contributions, per hour actually worked. Destatis places the states in three groups: high costs in urban and industrial regions, medium costs in several states with large rural areas, and lower costs mainly in economically weaker eastern German states. This pattern reflects differences in wage levels, collective bargaining coverage and employer social spending, as well as the economic structure of the services sector and industrial structure .
Regional cost differences have economic effects in both directions: low labour costs can give businesses a locational advantage and attract investment, while employees often face lower wages and a different industrial structure. Across the economy as a whole, changes in employment, pay and social security contributions affect competitiveness and the regional distribution of income. The national average masks considerable variation between the states.
Politically, the figures provide an empirical basis for debates about regional support, securing skilled workers, collective bargaining policy and infrastructure. The Federal Statistical Office describes the findings without reaching a definitive assessment of their causes. Differences may also be attributable to the mix of industries, the size and productivity of businesses, the prevalence of collective bargaining agreements and demographic factors. Any conclusions drawn are the subject of ongoing negotiations between the federal and state governments, social partners and local authorities.
The figures published now relate to the 2024 reporting year and the national definition used for labour cost statistics. Statements about future developments would be forecasts and go beyond the Federal Statistical Office’s release. What is clear, however, is that regional disparities in labour costs remain pronounced, with the highest figures in Hamburg and Hesse and the lowest levels in Mecklenburg-Western Pomerania and Saxony-Anhalt.
Editor: Daniel Mayer (Article created with AI assistance).