Crisis on the labor market: Almost all industries plan job cuts!

Crisis on the labor market: Almost all industries plan job cuts!

The German economy is in a deep crisis, which now also affects the labor market. According to the ifo institut , the employment barometer has fallen in December for four years. A dramatic decline of 93.3 points in November on just 92.4 points shows that fewer and fewer companies are willing to hire new employees. Accordingly, the number of bankruptcies to an alarming extent grows with an increase of 12.6 percent in November compared to the same month, as the Federal Office reported.

The poor economic prospects hardly leave an area untouched. The metal industry, the automotive industry and its suppliers are particularly affected in almost all industries, the metal industry, the automotive industry. The trade is also faced with the decline in positions and plans to reduce existing areas instead of creating new ones. The negative trends continue in the service sectors, while in the construction industry there is obviously no risk of larger waves of discharge. According to Klaus Wohlrabe, the head of the IFO surveys, the ongoing mandate has led companies to have to drastically rethink their personnel planning.

persistent bankruptcy applications

With the seventh decline of the Ifo barometer in a row, a worrying trend in the German economy is shown. The bankruptcy proposals are continuously increasing, with the growth rates have been in double digits since June 2023. The current situation means that the leading economic institutes predict a new shrinkage of the German economy, and a turn is currently not in sight. High geopolitical uncertainties and possible customs increases, e.g. under the new US government, increase uncertainty on the market and continue to burden companies. These developments could mean merciless reality for many companies and their employees.