“In the face of ongoing industrial recession, employment reductions in the German industry accelerate. As at March 31 this year, the number of employees was 1.8 % lower than twelve months earlier. This means that this means that In one year, around 101,000 were liquidated in the German industry. jobs. From 2019, this defect is 217 thousand.” – according to an EY report published on Saturday.
Experts indicate that the automotive industry currently experiences the most serious losses of jobs, with almost 6 percent. positions, i.e. about 45,000, were liquidated during the year. This means thatAlmost every second lost workplace in industry concerned the automotive industry.
“The fact that industrial sales in Germany fell by only 0.2 percent in the first quarter does not mean that the crisis will soon be overcome,” says Jan Borhilker, managing part of the EY Assurance department in Germany.
The expert emphasizes that the first quarter says little about the rest of the year. He adds that US-China's commercial conflict also causes side damage to German companies. “Only one thing is certain: uncertainty in the world economy is growing, and with it the readiness of companies to invest. In such an environment it is difficult to expect growth,” emphasizes Jan Borhilker.
EY analysis suggests that although the decrease in sales of German industry has slowed down significantly in the first quarter compared to the previous quarters, A negative trend in employment persists and even intensifies.
Borhilker expects this trend to persist for the rest of the year: “German industrial companies are currently under huge pressure: aggressive competitors from China reduce prices, important markets are weakening, demand in Europe stays low, and the entire American market is a great question mark. At the same time, companies are struggling with high costs – for example, energy and staff. It was counting on improving the situation and refrained from the reduction of the staff.
Germany is far from the end of this phase of employment reduction. Borhilker expects at least 70,000 to be lost in industry by the end of the year. jobs.
