Employment and Living Standards in Nazi Germany

This section explores the changes in employment and living standards in Nazi Germany. During the years of the Weimar Republic, the German people had suffered economic hardship due to the Great Depression and the lasting effects of the First World War. A major part of the Nazis’ appeal was their promise to rebuild Germany’s economy and eliminate unemployment.

By 1939, official figures showed that Germany had virtually no unemployment. However, these statistics were misleading, as many groups were excluded. Additionally, Hitler aimed to make Germany self-sufficient (a policy known as autarky), though this goal was never fully achieved.

How Hitler Increased Employment

The Nazis implemented a range of policies to reduce unemployment, with a particular focus on rearmament and infrastructure projects.

Public Works Programmes

Hitler launched vast public works projects to create jobs and improve Germany’s infrastructure. These included:

• The construction of the autobahns (motorways), which provided employment for around 80,000 men.
• The building of schools, hospitals, and government buildings.
• The construction of the 1936 Berlin Olympic Stadium, which provided work and helped boost Nazi propaganda on the world stage.

Rearmament

A key factor in reducing unemployment was Germany’s rearmament programme, which began in secret soon after Hitler came to power in 1933 and was publicly announced in 1935. This included:

• Massive investment in weapons production, tanks, aircraft, and naval ships.
• Expansion of the armed forces, in defiance of the Treaty of Versailles.
• Creation of millions of jobs in factories producing arms and military equipment.

National Labour Service (RAD)

• All young men aged 18–25 were required to join the National Labour Service for six months before being conscripted into the army.
• They worked on public projects such as drainage schemes and roadbuilding.
• The work was poorly paid, and conditions were tough, but it significantly reduced official unemployment figures.

Invisible Employment

While Nazi propaganda claimed that full employment had been achieved by 1939, this was not entirely true. Many groups were removed from the statistics:

• Women were strongly encouraged (and often pressured) to leave the workforce to make jobs available for men.
• Jews and other minorities were sacked from their jobs and not counted in unemployment figures.
• The 1.4 million men serving in the army were also not counted as unemployed.

Autarky – The Drive for Economic Self-Sufficiency

Hitler wanted Germany to be self-sufficient in essential goods such as food, oil, and raw materials. In 1937, Hermann Göring was appointed Minister of Economics and launched the Four-Year Plan to prepare Germany for war and achieve autarky. Key policies included:

• Increasing coal, iron, and steel production.
• Developing synthetic substitutes for oil, rubber, and fuel to reduce reliance on imports.
• Providing subsidies to farmers to encourage greater food production.

Despite these efforts, the plan was largely unsuccessful. By 1939, Germany was still importing:

• 20% of its food.
• 33% of its raw materials, particularly oil and rubber.

Germany remained heavily dependent on imports, which made war inevitable in Hitler’s eyes as he sought to secure resources through conquest.

Impact of Nazi Economic Policies on Different Groups

The impact of Nazi economic policies varied across society. While unemployment decreased, the cost was often a loss of personal freedoms, strict government control, and worsening conditions for many workers.

Big Businesses

• The Nazis had initially promised to break up monopolies (large companies controlling entire industries). However, by 1937, they controlled over 70% of production.
• The rearmament boom hugely benefitted big businesses, especially those involved in weapons production.
• Factory owners and industrialists saw their profits rise by 50% between 1933 and 1939.

Small Businesses

• The Nazis introduced strict regulations on the operation of small businesses.
• Many small firms struggled, and around 20% were forced to close between 1933 and 1939.

Farmers

Farmers were key supporters of the Nazi Party, and initially, their conditions improved:

• The Hereditary Farm Law (1933) prevented banks from repossessing farmers’ land.
• Agricultural prices rose by 20%, and wages in farming increased faster than in industry.
  However, farmers were also forced to meet strict production quotas, which limited their profits.

Industrial Workers

Before 1933, workers had been one of the biggest sources of opposition to the Nazis, with many supporting the Communists (KPD) or Social Democrats (SPD). The Nazis sought to control them through strict policies:

The Labour Front (DAF)

• Trade unions were banned in May 1933.
• The Nazis replaced them with the DAF (Deutsche Arbeitsfront), which controlled wages and working conditions.
• Workers had no right to strike or negotiate for better pay.

Strength Through Joy (KdF)

• This programme aimed to increase workers’ loyalty to the Nazis by offering benefits such as:
  • Cheap holidays and leisure activities.
  • Discounted theatre tickets and sports events.
  • Savings schemes for luxury goods, such as the Volkswagen Beetle (‘The People’s Car’), though few actually received one.

Beauty of Labour

• Encouraged factory owners to improve working conditions, such as better ventilation and lighting.
• However, workers were often expected to do this extra work for free, in their own time.

Did Living Standards Improve?

While employment rose, living conditions for workers did not significantly improve:

• Wages fell between 1933 and 1939.
• The average number of hours worked increased by 15%.
• Accidents in factories rose, as safety regulations were ignored in favour of increased production.
• Workers could be blacklisted for complaining about conditions, meaning they would struggle to find work elsewhere.

Nazi economic policies succeeded in reducing unemployment and stimulating industrial growth, but this came at the cost of personal freedoms and worsening conditions for workers.

• Big businesses flourished, particularly those in weapons production.
• Farmers initially benefitted, but government controls limited their profits.
• Industrial workers faced wage cuts, longer hours, and harsh conditions.
• Autarky failed, making war seem increasingly necessary for Germany’s long-term survival.

By 1939, Germany’s economy was geared towards war, and living standards were heavily dependent on continued military expansion.