Economist Veronika Grimm expects a slight increase in unemployment in Germany by 2025.
“In particular, the manufacturing industry will see job cuts” she said to the “Bild” (Monday edition). “Established industries, in which Germany was globally leading, are under pressure. Not everyone will be able to keep their previous job. However, companies are also seeking skilled workers. We will therefore see a slight, but not a drastic, increase in unemployment.”
Grimm believes that many employees will not be able to maintain their salary level in the event of a job change. “Many will bring less money home.”
In light of the economic development and the economic expectations for the coming year, the professor is calling for an economic program to boost investments in Germany. “Where, for example, plant closures are planned, the government should contribute to new company relocations. Additionally, it is important to support the structural change in the economy. A state-coordinated offer of further training options could be an option if workers switch companies or industries.”
All political measures should make it clear that the transformation must be accelerated, Grimm said further. The “proximity of companies to politics” has led to “companies becoming sluggish and trying to avoid the change.” This is a problem for Germany. “The SPD-Green-FDP government is also responsible for this.” A new federal government should, within a “100-day program” steer the country in a new direction and make Germany a more attractive location. “This requires reducing labor and tax costs and cutting bureaucracy. Through a market-oriented policy, investments in Germany will increase again.