Approximately 38% of new employees in Germany subject to social insurance contributions in 2018 were offered fixed-term contracts, according to data from the Institute for Employment Research.

The data, which is based on a survey of more than 10,000 companies in Germany, found that a total of 3.87 million new employees subject to social security were hired in Germany in 2018 with 38% of them on fixed-term contracts. The 38% figure is a slight decline from the previous year’s 41%.

Of those hired on fixed-term temporary contracts, 7% were given contracts with a duration of six months, while 6% were more than 18 months. Approximately 25% were given a temporary contract for a period between eight and 18 months. The remaining 60% were on permanent contracts.

The data also showed that larger businesses were more likely to use fixed-term contracts, while smaller firms used them less frequently.

The Institute’s research also found that 85% of fixed-term contracts offered were based on the company’s long-term needs, while 10% of new hires are for temporary needs, such as for cover for parental leave or sick leave.

In July 2019, Germany’s Federal Employment Agency (BA) and the Federal Employers' Association of Personnel Service Providers (BAP) published data which showed that on average in 2018, approximately one million temporary workers were employed in Germany, a decrease of 32,000, or 3%.

Recently, Germany enacted regulations that limit the temporary staffing maximum assignment duration at 18 months.