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Mood of crisis in Germany: How the industry needs to rethink now!
Zwickau is struggling with economic uncertainty and job losses. Experts are calling for innovation and targeted funding for the industry.
Mood of crisis in Germany: How the industry needs to rethink now!
What is happening in Germany? The business location is facing a worsening crisis, which is reflected in increasing layoffs at large corporations. Like the portal fr.de reports that more than 10,000 jobs have been lost in industry every month for over two years. But despite these alarming figures, people are less likely to lose their jobs today than they were 10 to 15 years ago. The labor market as a whole remains stable, while the industrial structure is under pressure.
Insight into the current figures shows that investments in the industry have been falling for years, which is significantly hindering digital and ecological transformation. Particularly dramatic: In the manufacturing sector, only 2% of employees work in companies that are less than five years old - compared to over 7% in the economy as a whole. The uncertainty about energy policy developments and changes in economic policy direction poses major challenges for many companies.
The need for a renewal policy
Labor market researcher Enzo Weber sums it up: “Germany has the know-how and skilled workers to transform various industries,” as he said in an interview tagesschau.de emphasized. Despite the current crisis, there is hope, especially in the automotive industry - a core area of the German economy. In addition to traditional sectors, it is important to promote new areas such as hydrogen and the defense industry in order to secure existing jobs and create new ones.
The challenges should not be underestimated. A switch to defense projects could help suppliers to the automotive industry to profitably use their technical skills. Nevertheless, the defense industry must use its spending efficiently to create significant innovations. Against this background, Weber calls for investments in infrastructure and targeted support for start-ups.
Skilled labor shortages and staffing problems
Despite the economic weakness, the German labor market can demonstrate a certain degree of robustness. According to that IAB the employment rate is 77.4 percent. Nevertheless, the unemployment rate is rising, and the long-term unemployed and people without educational or professional qualifications are particularly affected. This co-existing challenge of rising unemployment and vacancies is a key problem that needs to be solved. The shortage of skilled workers remains one of the biggest hurdles because many open positions cannot be filled.
The current development dynamics in Germany require a rethink. Policy responses that often focus on subsidies for established industries are not sustainable in the long term. Instead, it is time to promote targeted funding for innovative companies and new business models. Experts warn that suggestions for socially acceptable job cuts and early retirement could be counterproductive in the long term. A renewal policy that invests in the future and reduces regulatory hurdles could lead Germany out of this deep crisis.
In order to make the transformation successful, further development of existing qualifications is required. Retraining is not always necessary – it is often enough to expand existing knowledge. Ultimately, the success of the transformation depends not only on the economy itself, but also on political stability and the will to make bold decisions.