Germany is facing rising unemployment, particularly in the industrial sector, as companies consider job cuts, while the service sector sees job growth but often with lower wages. Young workers, like Aircraft Loading Supervisor Lukas Emmerich at Lufthansa, find opportunities, yet many remain unemployed. Notably, 38% of businesses plan layoffs, with the industrial sector bracing for significant job losses. Despite a surge of young people entering the workforce, the economic landscape remains challenging, with stark disparities across sectors.
Rising Unemployment and Job Shifts in Germany
The unemployment situation in Germany is experiencing an upward trend, particularly within the industrial sector where numerous companies are contemplating job cuts. In contrast, the service sector is witnessing a surge in job creation, albeit with many positions offering lower wages.
A Glimpse into the Life of an Aircraft Loading Supervisor
Meet Lukas Emmerich, a 21-year-old Aircraft Loading Supervisor at Frankfurt Airport. His role with Lufthansa involves ensuring that airplanes are loaded properly, not just with passengers and luggage, but also with various cargo such as mail. Lukas finds pride in his responsibilities, stating, ‘It’s a cool feeling to stand in front of the plane as a young guy. Everyone is older, and you have the power to send planes out. You sign off that everything is safe. That’s pretty cool.’
Despite the enthusiasm of Lukas and his colleagues, many individuals remain either unemployed or outside of training and educational programs. Currently, there are 120 Aircraft Loading Supervisors at Lufthansa in Frankfurt, which is insufficient to meet operational demands. The company is planning to recruit an additional 60 loaders at this location alone, contributing to a global hiring plan of approximately 10,000 new employees this year, with a significant portion based in Germany.
However, Lufthansa is an outlier in a broader trend where many companies are reducing their workforce. A survey conducted by the Institute of the German Economy indicates that only 17 percent of German businesses plan to hire more staff this year, while a notable 38 percent intend to cut jobs, particularly in the industrial sector where 44 percent of firms foresee layoffs.
The Growing Crisis in the Industrial Sector
Enzo Weber, a researcher from the Institute for Employment Research in Nuremberg, notes the deteriorating condition of the labor market amidst an ongoing economic downturn. ‘Germany is experiencing a sluggish economic decline, which is starting to impact employment. Unemployment has risen for three consecutive years,’ he explains. Following a period of stability where unemployment was below six percent since 2017, the rate climbed to 6.4 percent at the beginning of this year.
The industrial sector is facing significant challenges, with major companies like ZF, Continental, Thyssenkrupp Steel, and VW planning to eliminate around 70,000 jobs in the coming years. This trend is echoed by other notable firms such as Schaeffler, Porsche, Bosch, and Ford, all of which are making cuts that could total over 10,000 job losses per month. Pablo Ole Schmidt, a software developer at ZF, is among those feeling the weight of these changes, as he worries about job security in a division that is expected to be spun off.
Despite these challenges, an analysis reveals a notable number of young people entering the workforce, reminiscent of trends not observed since the 1990s. However, the ramifications of the industrial crisis extend beyond the workplace, impacting personal lives as well.
With the ongoing job cuts, Pablo has seen friends leave ZF after accepting severance agreements, something that was previously unthinkable. As he contemplates his future at Lake Constance, he acknowledges the increasing difficulty for even highly skilled individuals to secure stable employment in the face of a dwindling skilled labor shortage.
In summary, while some sectors like defense are thriving, the overall economic landscape in Germany is one of stagnation, leading to a complex job market where opportunities vary significantly across industries.