German insolvency numbers decline, but employment impact remains high, experts predict
According to the latest insolvency trend report by the Leibniz Institute for Economic Research Halle (IWH), the number of company insolvencies in Germany decreased by 9% in May compared to the previous month, reaching 1,478. This is still a 17% increase from the same period in 2024 and a 53% surge from the pre-pandemic average of May in the years 2016 to 2019. The report highlights that, despite the decline, the number of insolvencies remains at an elevated level.
The IWH’s insolvency trend report also reveals that in the top 10% of insolvent companies, 15,000 jobs were affected in May, a 7% increase from the previous month, 27% from the same period in 2024 and a 130% surge from the pre-pandemic average of May in the years 2016 to 2019.
Steffen Müller, the head of IWH’s insolvency research, commented that early indicators suggest a slight decline in insolvency numbers for June, but the institute still expects more company insolvencies in the coming months than in the previous year.