• Germany edition
 
Quarter of German firms 'cutting jobs in 2013'
Photo: DPA

Quarter of German firms 'cutting jobs in 2013'

Published: 19 Nov 2012 16:17 GMT+01:00
Updated: 19 Nov 2012 16:17 GMT+01:00

More than a quarter of German companies have said they would likely be cutting jobs in the coming year, as business confidence plummets, a report published Monday revealed.

The survey of about 2,300 firms pointed to a more pessimistic mood among German employers, with nearly 28 percent saying they were planning to shrink staff numbers in 2013, and just under 20 percent planning on expanding their work forces.

The Cologne Institute for Economic Research (IW) found out that 30 percent of businesses said their position was "worse than the previous year." This was 18 percent at the start of 2012.

Faltering foreign business and the associated limitations on production were making companies "markedly more cautious," concluded the IW.

For the first time since autumn 2008, more employers are expecting their production levels to fall than to rise. In the spring almost 40 percent were predicting production increases - a figure which by November had fallen below 17 percent.

In anticipation of a difficult business climate, many had curbed their investment plans. The number of companies in western Germany with planned reductions has almost doubled over the course of the year with a third planning to cut outlay.

"Export-intensive enterprises are being burdened by the sharp slowdown of the global economy, in particular by the recessionary trends in many European countries," IW director Michael Hüther told the Frankfurter Allgemeine Zeitung.

The country could avoid outright recession but growth figures did not appear encouraging. IW's 2013 growth forecast of 0.75 percent falls even below this year's figure of just under 1 percent.

A further escalation of the eurozone debt crisis could derail even these modest projections.

Hüther urged politicians to do everything possible to support businesses. "This includes doing without taxation hikes, using all available means to curtail social security expenditures, the continued development of infrastructure, and a convincing solution for Germany's energy transition," he told the paper.

The authors of the report noted that the German economy - despite often appearing to represent an "island of bliss" in the European debt crisis - may not be invincible after all.

DAPD/The Local/pmw

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

03:04 November 20, 2012 by Berlin fuer alles
Dying to hear from Chris Rea on this one.

As I and Smart2012 have been saying for a long time this is a start of the reality. Dr. Merkyl and Mr. Hyde is flying in ever decreasing circles and is fast approaching flight path up her own ass.
10:54 November 20, 2012 by smart2012
well done Verkel!!!
12:38 November 20, 2012 by grinners
Pity we can't see the relative stats here. From the numbers it appears a little over 8% (in total) may reduce staffing numbers, the majority of which are in export.

From this group, how big are the firms? How many people do they employ?

It's difficult to gather anything really useful from this kind of reporting.
13:35 November 20, 2012 by michael4096
"Export-intensive enterprises are being burdened by the sharp slowdown of the global economy..."

Yep! Sounds like all Merkel's fault to me. She should know better than slowing the world economy like that...
15:41 November 20, 2012 by Berlin fuer alles
@michael

Well she certainly did her best to slow down the Eurozone economy. :-)
00:02 November 21, 2012 by chris berlin
... polemic drama boys up there, even these news are not so dramatic. First, they are still projections into the future and even if it will apply, they talk about a a growth forecast of 0.75 percent. Growth... even no recession... so no need to worry. Sweet dreams.
04:54 November 21, 2012 by honeybeee
This sounds a little bit pessimistic, but in such a bitter situation , there still have some business model companies to survive in this current downturn situation , Schaeffler ag is just one of them , in their recent Q3 financial report , 4% revenue growth expectation achieved is not too bad in this still difficult situation compared to other company in other industry . Although their own company cash flow remains tight as well , they will still hang on to exceed last year¦#39;s whole year EBIT as the 2012 year expectation remained unchanged and even tried to invest and creat more factories and jobs in india and hungary .Whatever situation is coming in 2012 , Schaeffler believes themselves as a brave and skillful management company to deal with it with their great marketing ambition.
14:13 November 21, 2012 by smart2012
chris berlin, i thought Germany was booming...
Today's headlines
Tennis aces close in on Fed Cup final
Members of the German Fed Cup Team celebrate after an earlier victory in the tournament. Photo: DPA

Tennis aces close in on Fed Cup final

Germany took hold of their Fed Cup semi-final on Saturday, winning both the opening day singles to lead Australia 2-0 in Brisbane. READ () »

Croatia extradites ex-top spy to Germany

Croatia extradites ex-top spy to Germany

Croatia extradited a former Yugoslav spy chief, Zdravko Mustac, to Germany on Thursday to face charges for the 1983 murder of a dissident on German soil. READ () »

German court jails Somali pirate for 12 years
An officer of the Lower Saxon Criminal Investigation Department (CID) securing evidence on the hijacked ship Marida Marguerite. Photo: DPA

German court jails Somali pirate for 12 years

A German court has sentenced a Somali pirate chief to 12 years in jail for hijacking a ship off the Horn of Africa and tormenting its crew during an eight-month ordeal. READ () »

New app helps clients find prostitutes
Photo: DPA

New app helps clients find prostitutes

While the German government is considering tightening prostitution laws, Berlin entrepreneurs have developed a smartphone app to connect sex-workers with clients. READ () »

Highs of 22C forecast for Easter weekend
Photo: DPA

Highs of 22C forecast for Easter weekend

The days running up to Easter may be cool and wet, but the holiday weekend should be a bit warmer for most of Germany, according to forecasters. READ () »

Berlin man must call himself a mother
The fight over the transgender man's right to be his child's official father has been raging since last year. Photo: DPA

Berlin man must call himself a mother

A transgender person who became the first man in Germany to give birth in March 2013 must be registered as the child's mother, a court has ruled after his year-long court battle to be named a father. READ () »

Study: rape convictions fall sharply
Photo: DPA

Study: rape convictions fall sharply

The chance of being convicted of rape in Germany has more than halved in the past two decades to fewer than one in ten, a major study revealed on Thursday. READ () »

SPD: Restore 45-percent investment tax
The tax privilege for investment income is unfair, says the SPD. Photo: DPA

SPD: Restore 45-percent investment tax

The centre-left half of Germany's coalition government has called for the old top rate of a 45-percent tax on investments to be brought back - to match standard income tax and fight the squeeze on middle incomes. READ () »

Customs find smuggled cash in every third car
Sniffing out the money. Photo: DPA

Customs find smuggled cash in every third car

The number of Germans smuggling large amounts of cash across the Swiss border into Germany rose dramatically last year. Customs officers said on Thursday they made a find in almost every third car they checked. READ () »

Crystal meth use hits record level
Crystal meth seized in Bavaria. Photo: DPA

Crystal meth use hits record level

Consumption of crystal meth in Germany appears to have reached a record level, according to government figures published on Thursday. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Rhineland
Elderly man taped €200,000 to his genitals
Photo: DPA
Business & Money
What's the unemployment rate in your area of Germany?
Photo: DPA
Gallery
Nine ways to celebrate Easter like a German
Photo: Galerie Bilderwelt
Gallery
World War I in colour photos
Photo: DPA
Society
'The mafia has infiltrated every sector in Germany'
Photo: DPA
Society
JobTalk: Why you should teach English in Germany
Photo: DPA
National
330,000 sign up against TV licence fee
Photo: DPA
Hamburg
School kids hospitalized after 'porno' party
Photo: Submitted
Frankfurt
'I'll get even with my old pal Schwarzenegger'
Photo: DPA
Gallery
The week in pictures: April 5th - April 11th
Photo: DPA
Gallery
Ten great inventions you (probably) didn't know were German
Photo: J. Arthur White
Berlin
Clashes in Berlin as refugees tear down their own camp
Advertisement:
Photo: DPA
Gallery
Munich's baby polar bears are finally named
Photo: DPA
Gallery
The 10 best German employers to work for
CurrencyFair
Sponsored Article
Why it pays to avoid banks when making overseas transfers
Mr. Lodge
Sponsored Article
How to find a furnished rental in Munich
Sponsored Article
How to make a lasting impression in business
Hult International Business School
Sponsored Article
What they don't teach you at Business School
Photo: DPA
Society
Nine jobs you can only do in Germany
Photo:ESL
Sponsored Article
How to integrate successfully in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,104
jobs available
Toytown Germany
Germany's English-speaking crowd