Many German industries are planning job cuts

Just in the pharmaceutical industry employers set 0% layoffs

Many industries in Germany will be cutting jobs as a result of the coronavirus crisis. In April, 58% of companies in restaurants and catering decided to lay workers off or not to extend fixed-term contracts; the figure was 50% in hotels and in travel agencies 43%. This is the result of the latest Business Survey, carries out by Munich-based ifo Institute. 

In the automotive industry, 39% 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% of companies in personnel recruitment and provision, 48% of leather, leather goods, and footwear manufacturers, 30% of printing houses, and 29% of metal products manufacturers. On average, 18% of companies in Germany have cut jobs.

Legal, auditing, and tax consulting employees are less threatened by dismissals, with 5% of employers planning layoffs; the figure is 2% in real estate, 3% in construction, 5% 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% of companies) and Bavaria (20%). Meanwhile, particularly few companies are planning layoffs in Saarland and Rhineland-Palatinate (both 11%).

 

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