CCB Magazine

How have incomes in the creative professions developed? What is the annual income? What about pensions? A new study aims to shed light on the economic and social situation of creative professionals - we spoke to Bianca Creutz from Prognos AG, who co-authored the study, about the results.
 

INTERVIEW  Jens Thomas

CCB Magazine:Hello Bianca, for years, the working conditions of cultural and creative professionals have been considered precarious. You have published a new study on the economic and social situation in the creative professions.  Is there anything that was not previously known?

Bianca Creutz: First of all, there has never been a study that has looked at the situation so comprehensively. That's why we combined different data sources for the study. In addition to secondary statistical sources such as the microcensus or the Artists' Social Security Fund, we also conducted an online survey of those affected. To this end, we were in close contact with industry stakeholders, particularly industry associations. Another special feature is that we analyzed our results according to submarkets of the CE (Creative Economy) , which to my knowledge has never been done before.

CCB Magazine:What are the key findings of your study?

Bianca Creutz:The results show that the respondents' annual income from self-employment will amount to EUR 18,750 for full-time employment in 2023 (median value). There is also a heterogeneous income situation: Every fourth solo self-employed person in the cultural and creative sector earned less than €1,000 net per month in 2022. Every fifth person has more than €3,000 net in their wallet. Overall, solo self-employed people are significantly more likely to have very low incomes than employed people in Germany. Over 60 percent of those surveyed also have more than one job/activity - and only 25 percent of the solo self-employed surveyed rate their financial situation as good or very good. The often low income is also reflected in low pension expectations: the median monthly contribution to pension insurance is 148 euros. 40 percent of those surveyed have - in addition to their mostly low pension - no reserves for old age.

The annual income from self-employment in the cultural and creative sector is 18,750 euros full-time. One in four solo self-employed persons earned less than €1,000 net per month in 2022. Only every fifth person has more than 3,000 euros net in their wallet

CCB Magazine:Based on the results, you identify appropriate measures to improve the social situation of freelancers in the cultural and creative industries. What do they look like?

Bianca Creutz:In order to improve the economic situation, a commitment to minimum fee standards as a funding condition at all funding levels is needed, as well as the establishment of transparent, adequate calculation standards. The expansion of social security should also be driven forward, for example through the promotion of early retirement provision for solo self-employment and easier access requirements for voluntary unemployment insurance. And we need a guarantee of technology-proof copyrights and ancillary copyrights, as well as a demand-oriented expansion of support programs. Last but not least, we should expand career entry and training opportunities, for example by integrating entrepreneurial aspects into training and study curricula - to name just the most important measures.

CCB Magazin:But do instruments such as funding policy measures on minimum fee standards as a funding condition not miss the point? Critics argue that creative professions also have to survive on the market, regardless of public funding.

Bianca Creutz:I would put it another way: Income from contracts for public clients contributes to the income of 65% of respondents. In some cases, they account for a high proportion of total income. Minimum fee standards therefore make an important contribution to adequate fees from public sector contracts. They can also help to raise general awareness of the monetary value of artistic and creative services and initiate the necessary debate on adequate fees.

40 percent of respondents have no reserves for old age.  This is why the expansion of social security should be driven forward

CCB Magazine:How has the situation of creative professionals changed due to the coronavirus pandemic?

Bianca Creutz:A comparison of incomes in the years 2019 to 2023 shows that median incomes are lowest in the first coronavirus year 2020, then rise to the 2019 level from 2021 onwards and then increase continuously, albeit only slightly. However, 46% of the artists and cultural professionals surveyed currently see the impact of the coronavirus pandemic on their economic situation as a deterioration compared to the situation before the pandemic. In contrast, 34% of respondents see no change in their professional situation and 15% even see an improvement in their financial situation (15%).

CCB Magazine:Another study you conducted on the shortage of skilled workers in the creative sectors came to the conclusion that today there is sometimes a migration to so-called “safe” professions. Shouldn't creative professionals simply look for new professional fields if they want security?

Bianca Creutz:In many professions in the CE, self-employment is the most common form of employment. Our survey shows that the majority of people consider self-employment to be suitable for their work; at the same time, however, there appears to be few alternatives/options. The solo self-employed are therefore broadly diversified. The majority of those surveyed practise several professions and activities and are active in various submarkets. Our study results also show that only a few have given up their artistic activities due to the coronavirus pandemic. Overall, only a few are planning to change their form of employment, although one in four solo self-employed people are considering an additional salaried job.

CCB Magazine:The often low incomes also have an impact on the ability to pay contributions into pension insurance - and are reflected in low pension expectations. One in ten people were not covered by pension insurance at the time of the survey, which mainly affects young people under the age of 35. How can this problem be solved?

Bianca Creutz:In addition to the general improvement of the income situation, we propose two recommendations to improve the pension situation: Firstly, the entry requirements for the basic pension supplement must be improved. Currently, a certain average income and long basic pension periods are the prerequisites. Even if many creative professionals achieve the necessary years of employment, they fail to meet the minimum income requirement. Secondly, we advocate promoting early retirement provision for the self-employed. In order to raise awareness of the topic, especially among career starters, a targeted approach with reference to the existing advice and information services - for example via art colleges and professional and interest groups - would seem to make sense. Subsidizing contributions to statutory pension insurance for career starters at the beginning of solo self-employment could also make it easier for them to start a pension plan and thus increase take-up.

CCB Magazine:Last question: How will the situation of cultural and creative professionals change in the coming years? What political measures are needed?

Bianca Creutz:The various crises affecting our economy and society have also left their mark on the cultural and creative sectors. In the current monitoring report that we prepared for the BMWK, turnover and employment figures are rising again after the pandemic. If you look at the individual submarkets and professional groups, the picture is diverse. I notice that it is becoming increasingly difficult for many solo self-employed people in cultural professions following the cuts to cultural budgets. In my view, it is important that the economic importance of the cultural and creative industries is recognized in politics and society. We are trying to make a contribution to this with our studies.