September 2019 Recruiting in Germany Bulletin

Recruiting in Germany Bulletin

Welcome to our September 2019 Recruiting in Germany Bulletin. This latest update appears to indicate there has been a slight slowdown in general business confidence going into the middle of September, with the job market for key skills in Germany has slowed somewhat.

In a mixed picture, however, it does seem that in several sectors such as services, the public sector, housing and the digital marketplace are doing well and expanding.

In 2018, the ICT (including digital) market volume was forecast to have amounted to roughly 164 billion euros with a rising tendency throughout 2019. 40,000 new jobs are expected to be added in 2019 (up 3.5% compared to 2018), and ICT will remain an engine of employment growth in the long term. 

Despite relatively weaker than usual business confidence when compared to recent years, Germany is still a being seen as a strong and attractive market for foreign investors with many foreign companies still looking to expand their businesses here.

Therefore, if you are looking to recruit experienced sales staff to enable you to exploit new or existing markets within Germany, the UK, Europe or further afield, please call us for a no-obligation discussion.

Economic Commentary - what they are saying

GERMAN ECONOMIC INDICATORS in September 2019

After a decade of near-uninterrupted growth, Germany has shifted from being a central driving force of the eurozone economy to lagging behind.

Having narrowly escaped a “technical recession” last year, Germany is facing the threat of economic contraction as the prolonged weakness in its manufacturing sector shows increasing signs of seeping into services and consumer spending.

Above all the automotive industry and heavy industries like steel are feeling the effects of the global contraction in business. Managers are now openly talking about short time for workers and not replacing staff who have left or retired.

German industrial output slumped again in August, defying hopes of recovery to shrink by 0.6pc compared with July and 4.2pc lower than the same month in 2018.

Retail sales in Germany took a bigger than expected knock-in August, adding to the losses recorded in July to reveal the biggest drop this year in the latest indication that Europe’s largest economy may well slide into recession.

The barometer for the business climate fell to 94.3 points in August from 95.8 points in July, as the Munich Ifo Institute announced regarding its monthly survey of some 9,000 managers. This is the lowest value since November 2012.

German GDP will grow only by 0.5% in 2019 versus 1.5% in 2018, according to the government's own forecast put out recently.

German Exports

The US-China trade conflict, as well as ongoing tensions over trade between the US and the EU, and the looming possibility of a no-deal Brexit at the end of October have affected Germany's strong export sector throughout 2019.  

Germany’s export-dependent economy is, therefore, suffering from a Brexit shock that along with the rise in global trade tensions and structural changes in the car industry, threatens to push it into a technical recession. This must, however, be put into the context of a strong economic performance over the last few years.

Since the start of the year, exports have dropped by 0.1% month on month on average every single month. 

The People's Republic of China is Germany's main trading partner. Goods worth 199.3 billion euros were traded between Germany and China in 2018. 

The German Government

Unusually high turnout by voters in two German state elections has meant a blockage to the far-right from seizing first place there.

Alternative for Germany (AfD) had been aiming to top the polls in the eastern states of Brandenburg and Saxony, but a marked surge in people voting this time relegated them to second place.

The Chancellor’s twelfth visit to China has ended with a visit to Wuhan, the metropolis that is home to millions. At Huazhong University for Science and Technology, Chancellor Angela Merkel called on students to continue "China’s road to greater openness and reforms".

Agriculture can make an effective contribution to climate change mitigation, environmental protection, nature conservation and animal welfare. In 2020 a total of up to 75 million euros in additional funding is to be made available to promote relevant measures.

Compiled by SA in September 2019 from various news sources

*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.