Despite ongoing economic challenges in Germany, a significant majority of employees currently feel secure in their jobs, according to a recent survey conducted by the Cologne Institute for Economic Research (IW Köln). The study, results of which were reported by the Funke Media Group newspapers, indicates that 89 percent of respondents believe their employment is safe and do not anticipate job loss. This represents a slight increase compared to 2024, when the figure stood at 85 percent.
The IW Köln surveyed approximately 5,000 employees subject to social security contributions and those in marginal employment between May and June of this year, gathering data on various labour market-relevant topics. Respondents were asked to assess their risk of job loss within the next two years and their perceived ability to find new employment.
The proportion of “switchers” – individuals who anticipate potential job loss but believe they could readily secure comparable new positions – decreased from 9 percent to 5 percent over the past year. The number of employees fearing job loss and expecting difficulty finding similar re-employment remained stable at around 5 percent.
However, the survey revealed a divergence between individual job security perceptions and overall economic sentiment. All three surveyed groups – optimists, switchers and those expecting a negative outlook – assessed the labour market situation for 2025 as significantly worse than in the previous year. The IW Köln reported that the median response amongst those anticipating a negative outlook fell from -1 in 2024 to -3 this year. Optimists also indicated a worsening situation, while switchers revised their previously positive assessment to a neutral one.
According to IW Köln labour market expert Holger Schäfer, employees clearly recognize the deteriorating general labour market conditions but do not perceive an increased risk to their own positions compared to the previous year. “This is because the rise in unemployment is not primarily driven by layoffs” Schäfer explained. While announcements of staff reductions may occur, most companies are currently addressing workforce needs through regular attrition and, in some cases, offering severance packages.
The increase in unemployment, he clarified, is largely a consequence of reduced hiring practices. “This impacts all those seeking to enter or re-enter the labour market- particularly young people, whose unemployment rate is disproportionately rising.
Schäfer recommends that policymakers prioritize assisting job seekers in their employment efforts, rather than focusing solely on those who have or may lose their jobs, which remain within long-term averages.
The study also highlighted a greater level of pessimism regarding job security among employees in the industrial sector, where nearly 8 percent fear job loss. This aligns with the current trend of significant job reductions in this sector. Among those reporting a negative outlook, 53 percent attribute their concerns to the potential for technological advancements to render their skills obsolete, compared to only 17 percent of optimists.