ifo Institute: Many German Industries Are Planning Job Cuts
Many industries in Germany will be cutting jobs as a result of the coronavirus crisis. In April, 58 percent of companies in restaurants and catering decided to lay workers off or not to extend fixed-term contracts; the figure was 50 percent in hotels and in travel agencies 43 percent. This is the result of the ifo Institute’s latest Business Survey. In the automotive industry, 39 percent of companies made the same decision. “From now on, the crisis will have an impact on the German labor market,” says Klaus Wohlrabe, Head of Surveys at ifo.
An above-average number of layoffs are also being made in other sectors, for instance at 57 percent of companies in personnel recruitment and provision, 48 percent of leather, leather goods, and footwear manufacturers, 30 percent of printing houses, and 29 percent of metal products manufacturers. On average, 18 percent of companies in Germany have cut jobs.
Legal, auditing, and tax consulting employees are less threatened by dismissals, with 5 percent of employers planning layoffs; the figure is 2 percent in real estate, 3 percent in construction, 5 percent in the chemical industry, and 0 percent in the pharmaceutical industry.
There are also variations between regions: jobs are being cut at a particularly large number of companies in Baden-Württemberg (22 percent of companies) and Bavaria (20 percent). Meanwhile, particularly few companies are planning layoffs in Saarland and Rhineland-Palatinate (both 11 percent).
