Economy in the crisis: Stagnation expects - unemployment is increasing!

Economy in the crisis: Stagnation expects - unemployment is increasing!

A dark forecast for the German economy: According to the current winter forecast of the Kiel Institute for the World Economy (IFW Kiel), economic growth will stagnate in 2025. Private consumption, which has increased by 1.3 percent this year, is expected to decrease. Calculations show that the building investments from 2024 to 2025 have significantly decreased and have dropped by around 15 percent since 2020. This will lead to increasing unemployment, since the number of unemployed has risen by 370,000 since the summer of 2022, which could increase the unemployment rate from 6 percent to 6.3 percent in the coming years, such as ifw-kiel.de reported.

measures to combat the shortage of skilled workers

In order to meet these challenges, several initiatives to improve the labor market situation were presented. The need to facilitate the access of foreign specialists is particularly emphasized. Based on the Western Balkans regulation, the number of approved workers could increase to up to 75,000 per year. This increase aims at covering bottlenecks in many professions, especially in healthcare. The various measures could integrate up to 150,000 additional people into the labor market, such as