December 2019 Recruiting in Germany Bulletin

Recruiting in Germany Bulletin

Welcome to our December 2019 Recruiting in Germany Bulletin.

Despite a drop-off in business confidence Germany is still a strong and attractive market for foreign investors with many foreign companies still looking to expand their businesses in Germany.

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 December 2019

Under Chancellor Merkel, the German economy produced $4.2 trillion in 2019, making it the world's fourth-largest economy.

Growth in Germany however remained weak in the fourth quarter with the country just escaping recession. There are signs that prospects for its vast industrial sector may be stabilising, although the automotive industry is struggling whilst having to adapt to new technologies and due to the aftermath of Dieselgate.

A global trade war, China’s own slowdown and shifting consumer habits have pushed Germany’s industry near to recession but the domestic economy has remained unexpectedly resilient.

Part of the explanation is that firms are retaining staff even during difficult times out of fear they would struggle to find skilled workers once the downturn passes. However, many companies like those involved in the car industry are going on or are on short time.

The central bank noted that there are some tentative signs of stabilisation in industrial demand and said the domestic economy will probably continue to provide momentum. Because the labour market is likely to remain fairly robust and wages are expected to grow considerably, households’ income prospects should remain favourable,” it added.

Germany would likely experience more sluggishness though in 2020 despite a likely rebound in exports.

The mood on the German executive floors has nevertheless improved noticeably in December. The Ifo Business Climate Index rose to 96.3 points, after 95.1 points (seasonally adjusted) in November. The current situation indicator rose. Expectations also improved. The German economy appears to be more confident going into the new year.

German Exports

Despite the ongoing trade woes, German exports had a better-than-expected third quarter going into the fourth. Also, for total exports, German exports to the US have become as important as in 2015. In the first nine months of the year, exports to the US accounted for 9% of all German exports. At the same time, however, exports to China are suffering. Generally speaking, it appears that exports have steadied going into 2020.

The German Government

Attractive working conditions and an attractive social environment are to bring more specialists and skilled workers to Germany. The Federal Government has agreed this with corporate associations and trade unions at a meeting at the Federal Chancellery.

The 2020 budget of the Federal Employment Agency focuses again on investing in advanced training and skills development, meeting its responsibilities at a time of digital and demographic structural change. The Cabinet has approved its draft budget for 2020.

The government will make labour market access easier, swifter and more transparent for skilled workers, i.e. university graduates and immigrants with appropriate vocational qualifications and for their potential employers.

Compiled by SA in December 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.