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Date: 18-apr-2025
Germany’s labor market is facing mounting pressure in 2025, as a new survey conducted by the German Economic Institute (IW) shows that more than one-third of German companies are planning to reduce their workforce this year. The findings reflect a sobering outlook as Europe’s largest economy enters its third consecutive year of zero or negative economic growth.
The survey highlights that the industrial and construction sectors are especially vulnerable to job losses, citing high energy costs, inflation, weakened global demand, and delays in public investment as key factors. Companies in these industries are reportedly scaling back large-scale hiring plans and, in some cases, preparing for restructuring.
Germany has been grappling with weak consumer demand, supply chain disruptions, and geopolitical tensions—factors that have contributed to its economic stagnation since 2023. The energy transition, while necessary for climate goals, has also added cost burdens for many manufacturers.
“The job market is showing early warning signs of a broader slowdown,” said Michael Hüther, director of the IW. “Structural reforms and investment in innovation are urgently needed to prevent long-term erosion of industrial competitiveness.”
The potential wave of job cuts raises concerns about Germany's social safety net, unemployment benefits, and workforce retraining programs. Unions have called for targeted government support to help vulnerable sectors, while economic analysts are urging swift fiscal stimulus to revive growth momentum.
Despite the gloomy forecast, some sectors like renewable energy, tech, and logistics continue to show hiring resilience. However, unless broader economic indicators improve in Q2 and Q3, Germany may face rising unemployment and reduced consumer confidence by year-end.
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Date: 18-Apr-2025
BOJ Governor Kazuo Ueda signals that interest rate hikes remain possible if Japan’s core inflation nears the 2% target, as global trade tensions and U.S. tariffs weigh on forecasts.
Date: 18-Apr-2025
BOJ Governor Kazuo Ueda signals that interest rate hikes remain possible if Japan’s core inflation nears the 2% target, as global trade tensions and U.S. tariffs weigh on forecasts.
