Wave of Layoffs Growing in Germany!

According to a survey by the Cologne-based German Economic Institute (IW), thousands of people may lose their jobs in 2025. Investments are also rapidly declining.

38% of Companies in Germany Plan to Reduce Workforce This YearThis rate is one of the highest since the global crisis of 2008.

Significant Contraction in the Industry and Construction Sectors:

• 44% of industrial companies plan to reduce their workforce, while only 14% foresee new hiring.

• In the construction sector, the number of employees is expected to shrink by 35%, while 23% plan to create new jobs.

• This means the country’s production capacity is under serious threat.

  
  

Investments Are Pulling Back:

• 40% of companies surveyed have decided to cut investments in 2025.

• Only 23% plan to increase investments in 2025.

  
  

This scenario signals negative trends for economic growth and employment.

Michael Grömling, Head of the Macroeconomics Department at IW, highlights that current conditions are especially challenging for the industrial sector. While a limited recovery is expected in the spring of 2025, the pressures will continue. Source: Avrupadan