Germany’s Middle Class Has Shrunk Slightly (2024)

FAQs

Is the middle class shrinking in Germany? ›

The German middle-income group has shrunk in the late-1990s and early-2000s, mostly at the lower end, and has not recovered since. The German middle-income group is smaller than it was in the mid-1990s. Between 1995 and 2018, it shrunk by 6 percentage points, from 70 to 64% of the population.

The middle class is being affected by a variety of factors including inflation, the aging population and remote work, report shows. The middle class is shrinking as a result of several factors including surging inflation, an aging population, and the rise of remote work, according to a new report from ConsumerAffairs.

For single people, this corresponded to a net disposable income of between €17,475 and €46,600 per year in 2019. For childless couples, the range was between €26,212 and €69,900. Couples with two children statistically belonged to the middle class if they had an income of between €36,698 and €97,860 a year.

Today, concepts of social class often assume three general economic categories: a very wealthy and powerful upper class that owns and controls the means of production; a middle class of professional workers, small business owners and low-level managers; and a lower class, who rely on low-paying jobs for their ...

Europe's biggest economy has continued to shrink amid crises, inflation and lacking investment. Economists have warned the outlook for 2024 does not look much better.

Very low German fertility

The low fertility rate is, of course, the main reason for the expected decline in the German population. In 1911, the population of Germany was 63.5 million people. By 2100, the population will be about the same having peaked at around 82.7 million people in 2017.

Our analysis shows that the size of the middle class declines in eighteen out of twenty-six European countries between 2004 and 2014. By examining the polarization curves, we find that in thirteen countries the downsizing of the middle class is independent from the chosen cut-off points.

However, the far larger group comprises the countries where the wealth situation of the middle class has deteriorated significantly. These include China and Russia, but also Slovenia, Bulgaria, Hungary and Slovakia.

The shrinking middle class is a complex issue with no single cause or solution. There are many factors that contribute to the decline of the middle class, including economic changes, globalization, technological advances, and shifts in public policies.

After children complete their primary education (at 10 years of age/grade 4, 12 year of age in Berlin and Brandenburg), there are four options for secondary schooling: Gymnasium (Germany) until grade 12 or 13 (with Abitur as exit exam, qualifying for university).

What is the top 1% income in Germany? ›

To reach the top 1 percent of earners, you would need a monthly take-home salary of 7.190 euros. This is equivalent to an annual net income of almost 86.000 euros, after taxes, or an annual gross salary of around 150.000 euros.

In Germany, grades are generally classified as follows: "sehr gut" (very good) for grades between 1.0 and 1.5, "gut" (good) for grades between 1.6 and 2.5, "befriedigend" (satisfactory) for grades between 2.6 and 3.5, and "ausreichend" (sufficient) for grades between 3.6 and 4.0.

Turning to non-market factors, marriage and childbearing increasingly distinguish the haves and have-nots. Families have fewer children, and more U.S. adults are living alone today than in the past. As a result, households on average are better off since there are fewer mouths to feed, regardless of income.

As of 2022 (the most recent Census data), the average median household income in the U.S. was $73,914, meaning the national range for the middle class is roughly $49,271 to $147,828. Across the nation's largest cities, the range is between $51,558 and $154,590, according to SmartAsset.

Where you rank by income. According to the Census Bureau's Income in the United States: 2022 report, the median household income is $74,580 (a 2.3% decline from 2021), while household income levels for each class level are as follows: Lower class: less than or equal to $30,000. Lower-middle class: $30,001 – $58,020.

In 2022, 84.4 million people lived in Germany. With a population density of 233 inhabitants per km² in 2021, Germany is one of the most densely populated nations in Europe.

As expected, China and India are projected to be the two biggest sources of additions to the global middle class in 2024. Both countries have massive populations, rising income levels, and high rates of urbanization. Further down the list we can see Indonesia and Bangladesh adding 5 million consumers each.