Germany: the crisis threatens businesses’ employment pacts

A promise increasingly hard to keep. Yet, the longer the crisis last, the more businesses may not be able to keep their promise. “For the moment, many businesses are still using partial unemployment, but we are expecting unemployment to rise again starting this summer” warned Kai Carstensen, expert at the Ifo economic research institute, saying that around 700.000 people might loose their jobs this year. “At national level, almost half our businesses envisage cutting staff  this year” added Martin Kannegiesser, leader of the Gesamtmetall employers’ federation. He also warned that if the crisis continues, partial unemployment won’t help businesses maintain employment, at the latest this fall. A series of conflicts on employment guarantees might break.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

>see our dispatch No. 061120). According to the union, 250 employment pacts of this kind were concluded in the key region of Südwesten in the Bade-Wurttemberg, thus protecting 300.000 employees from economic redundancies. 600-1.000 pacts were signed in the country.

A promise increasingly hard to keep. Yet, the longer the crisis last, the more businesses may not be able to keep their promise. “For the moment, many businesses are still using partial unemployment, but we are expecting unemployment

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
France: sectors feel economic slowdown to differing degrees
The latest data on France’s occupational sectors (branches professionnelles), covering the year 2023, show how employment trends are shaping workplace dynamics. After a more favourable period for...
United Kingdom: Parliament finally passes Employment Rights Bill
The UK Labour government's flagship reform of employment rights was passed by both houses on 16 December after a turbulent parliamentary process. The bill introduces numerous changes to labour...
18 December 2025
EU: social partners in telecoms sign joint statement on AI
On 16 December, the social partners in Europe's telecommunications sector unveiled a joint statement on artificial intelligence. They propose an action plan for skills and commit to raising...
18 December 2025
EU: MEPs demand directive on algorithmic management
Members of the European Parliament have called for a directive on algorithmic management. Such legislation would introduce obligations for companies to inform employees, assess health and safety...
17 December 2025
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Spain: new terms and conditions for in-company training contracts
On 25 November, Spain's Council of Ministers approved a regulation on training contracts. This text defines the terms and conditions for hosting work-study students and interns doing professional...
2
France: sectors feel economic slowdown to differing degrees
The latest data on France’s occupational sectors (branches professionnelles), covering the year 2023, show how employment trends are shaping workplace dynamics. After a more favourable period for...
3
Germany: apprenticeship openings fall sharply in manufacturing and chemicals
From 1 January 2026, Dutch collective agreements for temporary employment agencies will alter the employment conditions of temp workers. Agencies will be required to pay these workers at least the...