• 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

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
Stakes rise in Oracle-SAP copyright fight
Photo: DPA

Stakes rise in Oracle-SAP copyright fight

US appeals court on Friday ruled that Oracle be given a choice between $356.7 million or a new trial for its copyright lawsuit against German rival SAP. READ  

Court rules against child porn suspect Edathy
Former SPD MP Sebastian Edathy photographed at a press conference in February. Photo: DPA

Court rules against child porn suspect Edathy

The Constitutional Court on Friday rejected an attempt by former Social Democratic (SPD) MP Sebastian Edathy to have evidence against him thrown out in his trial for possession of child pornography. READ  

Student busted in case of misdelivered hash
Photo: DPA

Student busted in case of misdelivered hash

A Bavarian student expecting a cannabis delivery was collared by "Commissioner Fluke" after acting surprised in front of policemen when he saw his letter box was empty. READ  

Security fears block Germany-Israel match
German and Israeli fans cheer in the stands during a friendly in Leipzig in 2012. Photo: DPA

Security fears block Germany-Israel match

A friendly soccer match against Israel marking 50 years of diplomatic ties has been called off amid security concerns and the escalation of the Middle East conflict, the German Football Federation (DFB) said on Friday. READ  

Germany's brain drain is Europe's gain
Inside the terminal at the Frankfurt International Airport. Photo: Shutterstock

Germany's brain drain is Europe's gain

Figures from the European Union show that while many German professionals are able to find work abroad with their well-recognised qualifications, Germany doesn't always extend the same courtesy to foreigners. READ  

S-Bahn arson in support of refugees, group claims
Passengers at Berlin's Ostkreuz station yesterday as information screens relay news of the disruption. Photo: DPA

S-Bahn arson in support of refugees, group claims

A radical left-wing group claimed responsibility on Friday for an arson attack that cut power to several S-Bahn lines and caused transport chaos in Berlin, saying it was intended to awaken people to the plight of refugees. READ  

Pilots' strike over, but disruption continues
Passengers in Hannover check departure boards showing cancelled Germanwings flights. Photo: DPA

Pilots' strike over, but disruption continues

UPDATE: Germanwings pilots have ended their six-hour strike which grounded 116 flights and up to 15,000 passengers of Lufthansa subsidiary Germanwings on Friday. READ  

Man narrowly escapes unwelcome drop-in
Emergency services use a crane to lift the fallen crane in Cologne. Photo: DPA

Man narrowly escapes unwelcome drop-in

A Cologne resident was pinned to his bed after a 40-metre construction crane toppled onto his home early on Friday. READ  

'Further sanctions' could hit Russia, says Merkel
Merkel looking grave at Thursday's West Balkan conference in Berlin. Photo: DPA

'Further sanctions' could hit Russia, says Merkel

German Chancellor Angela Merkel said on Thursday that European leaders will discuss the worsening Ukraine crisis and possible further sanctions against Russia at a weekend summit. READ  

UK-Germany rivalries live again in Champs League
Bayern Munich captain Philipp Lahm with fellow World Cup champion Bastian Schweinsteiger. Photo: DPA

UK-Germany rivalries live again in Champs League

The 2014-15 Champions League draw yesterday brought déjà-vu for English and German clubs as old opponents found themselves facing off once again. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: Shutterstock
Gallery
Ten of the oddest things found by German border control
Photo: Gerkan, Marg and Partners/Tegel Projekt GmbH/J. Mayer
Berlin
How will Berlin look in five years' time?
Photo: DPA
Culture
Sprechen Sie Deutsch? 10 reasons why you should
Photo: DPA
Gallery
The best of Berlin's mayor Klaus Wowereit in 14 pictures
Photo: DPA
Politics
Germany sends burgers and sausages to Kurds
Photo: Matthias Kock
National
Tribes, ties and a movie: A German's Afghan life
Photo: DPA
Gallery
10 things to do before summer in Germany is really over
Photo: DPA
Gallery
The mysteries of Berlin's abandoned theme park
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

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

3,480
jobs available
Toytown Germany
Germany's English-speaking crowd