NUREMBERG / LONDON (IT BOLTWISE) – In the last three years, German companies have hired 325,000 new employees to cope with growing bureaucracy. A study by the Nuremberg Institute for Labor Market and Occupational Research shows that 14 percent of companies rate the bureaucratic burden as very high. The General Data Protection Regulation in particular poses challenges for many companies.
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In recent years, German companies have invested significantly in expanding their administrative departments in order to meet the increasing demands of bureaucracy. A current survey by the Nuremberg Institute for Labor Market and Occupational Research (IAB) shows that a total of 325,000 new jobs have been created since 2020 in order to overcome bureaucratic hurdles. This development is a direct response to the increasing complexity of legal regulations, which has been exacerbated in particular by the General Data Protection Regulation (GDPR).
The IAB study shows that 14 percent of the companies surveyed rate their bureaucratic burden as very high in 2025. In comparison, this value was only 4 percent in 2022. This increase shows how much regulatory requirements have increased in recent years. Large and medium-sized companies are particularly affected, 30 percent of which have hired additional staff for administrative tasks since 2022.
The increase in bureaucratic-related personnel increases is also clearly noticeable in specific sectors such as energy supply and public administration. Here, 20 percent of energy suppliers and 19 percent of public administrations report an increased need for administrative staff. This development not only leads to higher personnel costs, but also to a reduction in the productivity and innovative strength of companies.
In order to counteract this development, IAB researcher Alexander Kubis suggests introducing new laws on a trial basis. This temporary introduction could be combined with an open-ended test order in order to better assess the actual impact on companies. This approach could help to reduce the bureaucratic burden and at the same time increase the flexibility of companies.
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