German Employers Concerned About Workforce Competition Amid Military Recruitment Plans

As the Russia-Ukraine war enters its third year, NATO countries, including Germany, are taking steps to bolster their defense capabilities. Germany is reportedly considering a six-month voluntary military service program aimed at increasing its reserve forces. According to sources cited by Reuters, the program would provide basic training to recruits, potentially doubling Germany’s current reserve force of 100,000 trained personnel.

The German Defense Ministry has declined to comment on the plans. However, the potential reintroduction of mandatory or voluntary military service has sparked concerns among German employers, who are already struggling with labor shortages.

The Financial Times (FT) reported that German businesses are worried about increased competition for workers if the government moves forward with military recruitment plans. Industry representatives expressed support for strengthening the armed forces but warned that mandatory service or similar measures could further strain the labor market.

Steffen Kampeter, director of the Confederation of German Employers’ Associations (BDA), acknowledged the need for a stronger military but cautioned that the armed forces could compete with businesses for personnel. “Yes, we need more active soldiers. Yes, we need to expand the reserve system. But only a strong economy can make this possible,” Kampeter said.

Economic and Labor Market Concerns
According to OECD data, Germany, which has record-low unemployment and some of the shortest working hours in the world, is also facing a shortage of skilled workers in key sectors such as healthcare, education, and engineering. The government has been working to extend working hours to stimulate the economy and address these shortages.

Kampeter warned that if the military begins competing for workers, issues such as weekly working hours, the length of working life, and the integration of part-time workers into the labor market will become even more critical. “If the necessary personnel are taken from us, it means that issues like weekly working hours, the length of working life, and better integration of part-time workers into the labor market will become even more important,” he said.

A study conducted last year by the Ifo Institute in Munich suggested that instead of reintroducing mandatory military service, it would be more effective to make voluntary military service more attractive by increasing financial incentives. The study, commissioned by the German Finance Ministry, warned that mandatory military service would come with high economic costs, delaying people’s entry into the workforce or education and negatively impacting their financial situations.