• Germany's news in English

Quarter of German firms 'cutting jobs in 2013'

The Local · 19 Nov 2012, 16:17

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

Facebook Twitter Google+ reddit

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.

Story continues below…

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)

Facebook Twitter Google+ reddit

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

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
These are Germany's top ten universities
The new library of Freiburg University. Photo: Jörgens.mi / Wikimedia Commons

These are the best universities in all of Germany - at least according to one ranking.

Introducing Swabians - 'the Scots of Germany'
Photo: DPA

These Southern Germans have quite a reputation in the rest of the country.

Woman sues dentist over job rejection for headscarf
Photo: DPA

A dentist in Stuttgart is being taken to court by a woman whom he rejected for a job as his assistant on the basis that she wears a Muslim headscarf.

Isis suspect charged with scouting Berlin attack sites
Photo: DPA

German federal prosecutors said Thursday they had brought charges against a 19-year-old Syrian man accused of having scouted targets in Berlin for a potential attack by the Isis terror group.

Berlin Holocaust memorial could not be built now: creator
The Memorial to the Murdered Jews of Europe, in Berlin. Photo: DPA.

The architect of the Berlin Holocaust memorial has said that, if he tried to build the monument again today, it would not be possible due to rising xenophobia and anti-Semitism in Germany and the United States.

'Liberal' Germany stopping Europe's 'slide into barbarism'
Ian Kershaw. Photo: DPA

Europe is not slipping into the same dark tunnel of hate and nationalism that it did in the 1930s - mainly thanks to Germany - one of the continent's leading historians has said.

Eurowings strike to hit 40,000 passengers
Travelers impacted by the strike on Thursday wait at Cologne Bonn airport. Photo: DPA.

The day-long strike by a Eurowings cabin crew union is expected to impact some 40,000 passengers on Thursday as hundreds of flights have been cancelled.

Deutsche Bank reports surprise quarter billion profit
Photo: DPA

Troubled German lender Deutsche Bank reported Thursday a surprise €256-million profit in the third quarter, compared with a loss of more than six billion in the same period last year.

US 'warned Merkel' against Chinese takeover of tech firm
Aixtron HQ. Photo: DPA

The German government withdrew its approval for a Chinese firm to purchase Aixtron, which makes semiconductor equipment, after the US secret services raised security concerns, a German media report said Wednesday.

Long-vanished German car brand joins electric race
Photo: DPA

Cars bearing the stamp of once-defunct manufacturer Borgward will once again roll off an assembly line in north Germany from 2018, the firm said Wednesday.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd