Reduction in Employee Numbers Anticipated Across Numerous Industrial Businesses, Reveals Recent Poll
In a recent survey conducted by Lower Saxony Metal, a grim outlook on an economic recovery was shared by many industrial companies. The survey, which took place between August 25 and September 9, involved 520 companies in the region.
Volker Schmidt, CEO of Lower Saxony Metal, underscored the severity of the situation, stating that Germany is currently experiencing the longest economic crisis in the history of the Federal Republic, with the ninth consecutive quarter of recession.
The metal and electronics industry in Lower Saxony is facing growing concerns, with the automotive industry being particularly pessimistic about an economic recovery. Volker Schmidt warned of continued job cuts and an acceleration in the winter months, as nearly two-thirds of manufacturing jobs in Lower Saxony depend on the automotive industry.
The survey results revealed that 45% of companies in the entire industry reported too few orders, and 59% of companies in the automotive industry reported a higher shortage of orders compared to June (47%). In response, 28% of companies in the entire metal and electronics industry are planning to cut jobs, while 38% of automotive companies in Lower Saxony are planning to do the same in the coming year.
Schmidt attributed the ongoing economic crisis, in part, to rising social security contributions. He criticised the lack of social state reforms and non-competitive energy prices, and linked the burdens from non-insurance costs in billions of euros to finance citizen's allowance recipients, including migrants, which are currently paid from health insurance contributions instead of the state budget.
Schmidt's concerns are not unfounded. If these issues continue, investments in Germany may likely occur elsewhere, further exacerbating the economic crisis. The industry's message is clear: urgent action is needed to address these challenges and foster a more favourable business climate.
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