A palpable wave of insecurity is washing over the German workforce, according to a recent study by consulting firm EY, revealing a surge in anxieties surrounding job security. The survey, published by “Welt” indicates that 16 percent of German citizens now express concerns about the stability of their employment – the highest level recorded since 2009. Henrik Ahlers, CEO of EY, describes this as a “creeping decline” in workplace confidence, with the percentage of worried workers climbing by three percentage points year-on-year and a significant five percentage points compared to 2023.
The anxiety isn’t distributed evenly across the population. A striking generational divide is evident, with Baby Boomers (over 55s) maintaining a relatively optimistic outlook, with only 10 percent fearing job losses. Conversely, younger demographics are significantly more apprehensive. Those aged 36-45 report concerns at a rate of 17 percent, while the under-35 cohort expresses anxiety at a worrying 21 percent, indicating a widespread lack of faith in future career prospects amongst the young workforce.
Income level also plays a crucial role in shaping these fears. The correlation between lower earnings and increased job insecurity is stark; over a third (more than 33%) of individuals earning less than €25,000 annually are worried about losing their jobs. This stands in sharp contrast to the mere 8 percent of high earners, those with salaries exceeding €70,000, who share similar concerns. This disparity highlights a growing chasm in economic confidence within Germany.
The heightened anxieties surrounding job security are compounded by a continued downward trend in expectations regarding personal finances. Only 17 percent of the 1,000 surveyed anticipate increased financial resources in the coming year, while a concerning 26 percent fear a deterioration in their financial circumstances. This marks the fourth consecutive year that pessimism has outweighed optimism, illustrating a deeply entrenched sense of economic unease.
“We continue to observe profound skepticism amongst the population, both regarding individual finances and the broader economic trajectory of Germany” stated Ahlers. He attributes this pervasive anxiety to a confluence of factors: ongoing geopolitical turmoil, a sluggish economy and discouraging news emanating from key economic sectors. This combination has fostered a climate of caution, prompting many to curtail major purchases and hold back from long-term commitments, further hindering potential economic recovery. The findings raise critical questions about the government’s ongoing policies and their impact on job creation, income inequality and the overall economic stability of the nation.