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Skilled trades: difficult economy causes undeclared work to boom

Dresden 07. June 2026 04:02 Uhr 5 Min
Skilled trades: difficult economy causes undeclared work to boom
The Dresden Chamber of Crafts wants to take tougher action against undeclared work. (Symbolic image) / Photo: Julian Stratenschulte/dpa
From: DieSachsen News
There is growing concern in the construction and hairdressing trades in Saxony: more and more jobs are being completed without an invoice. How experts and the chamber assess the situation.

The industry is sounding the alarm: undeclared work is increasingly becoming a problem in the skilled trades sector in Saxony. "The difficult economic situation is causing undeclared work to boom," says Andreas Brzezinski, Managing Director of the Dresden Chamber of Skilled Crafts. There are currently an increasing number of inquiries and reports from member companies. The main focus is on the construction and finishing trades as well as hairdressing, where, according to the Chamber of Skilled Crafts, more and more barbershops are spreading.

According to the Chamber of Skilled Crafts, some of the information also indicates that work is being carried out by companies that are not qualified to do so. For example, activities that are actually reserved for another trade are being taken on. "For example, when a bricklayer suddenly also offers painting work," says the chamber. In the case of barbershops, it is also checked whether the prescribed management by a master hairdresser is complied with.

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Round table against illegal employment

The Dresden Chamber of Crafts recently invited customs, trade offices, district offices and tradespeople to a round table. Among other things, more joint priority checks were suggested.

However, not all chambers of skilled trades are observing the same development. When asked, the Chambers of Crafts in Chemnitz and Leipzig stated that a significant increase in such reports could not currently be observed. "A weak economy generally strengthens the shadow economy," explained Volker Lux, Managing Director of the Leipzig Chamber of Skilled Crafts. In Chemnitz and Leipzig, the focus is also on barbershops, among others.

High taxes also a cause

Brzezinski from the Dresden Chamber of Crafts also sees politics as having a duty. "High taxes and social security contributions are one of the main causes of undeclared work." They widen the gap between gross and net income and make manual work more expensive. "Which increases the incentive to operate illegally." Relief for businesses is necessary.

The deputy director of the ifo Institute Dresden, Joachim Ragnitz, believes that the Chamber of Skilled Crafts' assessment is understandable. "When the economy is weak, fewer new jobs are created or jobs are cut," he explains. This then leads to evasive reactions from people who cannot find a job - in other words, to more undeclared work.

Declared work is also favored by high taxes and social security contributions. "And the client also saves on VAT. In this respect, this is probably the most relevant reason," said Ragnitz. Despite a slight increase, taxes are still about as high as they used to be. "But real incomes have also been stagnating for several years," he explained.

Construction and hairdressers in the focus of customs

The main customs office in Dresden is aware of the problem. The construction industry and the hairdressing sector with its barbershops were among the main areas of focus for the checks. "These sectors are susceptible to illegal employment," said spokeswoman Heike Wilsdorf when asked. There are many activities in these sectors in particular that do not require skilled workers. Around 200 employees work for the Financial Control of Undeclared Work (FKS). However, the logistics and freight forwarding sectors as well as hotels and restaurants are also among the vulnerable areas.

In 2025, a total of 3,500 investigations were initiated at the main customs office in Dresden for criminal offences in the area of undeclared work and illegal employment, as well as more than 900 proceedings for administrative offences. The amount of damage determined amounted to around 14 million euros.

How large the actual extent of undeclared work is, however, is difficult to quantify, according to Ragnitz. "Undeclared work is also characterized by the fact that it is not recorded statistically," said the economist. The estimates of chambers and associations are therefore often based on practical observations.

Copyright 2026, dpa (www.dpa.de). All rights reserved

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Topics :

Company Customs Saxony Labor Labor market Crime Taxes Dresden
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Projekt Saxony Today : Mehrsprachigkeit von regionalen Nachrichten für in Sachsen lebende Menschen ohne deutsche Muttersprache. Projekt wird gefördert durch die Sächsische Landesanstalt für privaten Rundfunk und neue Medien. Diese Maßnahme wird mitfinanziert durch Steuermittel auf Grundlage des vom Sächsischen Landtag beschlossenen Haushaltes.
Projekt Saxony Today : Mehrsprachigkeit von regionalen Nachrichten für in Sachsen lebende Menschen ohne deutsche Muttersprache. Projekt wird gefördert durch die Sächsische Landesanstalt für privaten Rundfunk und neue Medien. Diese Maßnahme wird mitfinanziert durch Steuermittel auf Grundlage des vom Sächsischen Landtag beschlossenen Haushaltes.