Dark forecast: Four out of ten companies in Germany plan job cuts!

Dark forecast: Four out of ten companies in Germany plan job cuts!

The economic situation in Germany is alarming: A current survey by the employer -related institute of the German Economy (IW) shows that four out of ten German companies want to reduce staff in the coming year. Only 17 percent of the companies surveyed plan to hire new employees. According to IW study author Michael Grömling, the employment prospects are as bad as it has not been since the 2009 financial crisis. The survey comprised more than 2,000 companies and illustrates the dark reality of the labor market with a significant decline in the tendencies of affairs, especially in industry, where only 14 percent of the companies are considering considering personnel, while 44 percent intend to save.

economic crisis and pessimism

The companies surveyed report a cloudy business situation from which no end is emerging. 40 percent expect worse prospects for next year, and only one fifth is optimistic. These concern also results in the decline in the planned investments: only 23 percent of companies want to invest 2025 more, while 40 percent assume that their expenses are decreased. This illustrates the ongoing economic motionlessness in Germany, which now also affects the labor market.

The IW analysis notes that the optimism of recent years has given way to a dark reality. "The employment in Germany, which has been ingoing since 2005, has ended," it says. Industry in particular is affected; Here is no longer spoken of a recession, but of a structural crisis that could cost jobs permanently. Economic analysts warn of increasing de -industrialization that could put a lasting strain on the German economy. The focus of the company is now more than ever on cost reduction, which increases the concerns about the future of the labor market, as well as regionalheute.de reports.