Latest news with #InstituteforEmploymentResearch
Business Times
2 days ago
- Business
- Business Times
US tariff policy could cost Germany 90,000 jobs within a year
[BERLIN] US tariff policy could cost Germany 90,000 jobs within a year, the country's labour office head told Sueddeutsche Zeitung newspaper in an interview released on Friday (Jun 6). Federal Employment Agency chief Andrea Nahles was citing the Institute for Employment Research (IAB) and other institutes, which conducted research on the effect of a 25 per cent tariff rate. 'The problem is this lack of predictability, which is doing us massive damage – it prevents companies from investing, hiring and training people,' Nahles told the newspaper. 'The erratic trade policy of the USA is a burden on the German labour market.' Last month, unemployment in Europe's largest economy rose at a faster pace than expected, with the number of people out of work approaching the 3 million mark for the first time in a decade. Economic malaise in Germany has put pressure on the job market even against a backdrop of long-term labour shortages, adding to pressure on conservative Chancellor Friedrich Merz, who has vowed to pull the economy out of a two-year decline. US President Donald Trump's tariffs could deal a major blow to those efforts – possibly putting the German economy on track for a third straight year of recession, for the first time in the country's post-war history. REUTERS
Yahoo
17-02-2025
- Business
- Yahoo
Forget the clichés - Gen Zers in Germany work more, report says
Young adults in Germany aged 20 to 24, are increasingly participating in the workforce, the official Institute for Employment Research (IAB) said from its Nuremberg headquarters on Monday. Between 2015 and 2023, participation increased by more than six percentage points to around 76%, mainly due to students increasingly taking on part-time jobs, according to a report released on Monday by the institute. Between 1995 and 2015, workforce participation of 20 to 24-year-olds had consistently declined, the report said. Common clichés do not apply The image that many older workers have of this generation -- that they prefer to cultivate their private lives over their professional ones - is inaccurate, the report said. "This finding contradicts common stereotypes about the lack of willingness to work among Generation Z," the authors say in the study. Generation Z includes those born from 1995 onwards, with the first cohort of this generation entering the 20 to 24 age group in 2015. In comparison, the participation rate of 25 to 64-year-olds only increased by almost three percentage points to nearly 87% over the same period. The institute also notes that young people are no more likely to change jobs than in the past and they don't have a preference for different working hours than older generations. While the numbers indicated that between 2015 to 2023, both full-time and part-time employment in the age group increased, part-time employment rose significantly more. Among students aged 20 to 24, the employment rate reportedly increased by a good 19 percentage points to 56%, while for non-students, it increased by nearly two percentage points to almost 86%.
Yahoo
17-02-2025
- Business
- Yahoo
Study: Higher defence spending could create 200,000 jobs in Germany
Additional spending on defence could create up to 200,000 jobs in Germany, a study found on Monday. The report, led by the Institute for Employment Research (IAB), found that raising expenditure on the German military, or Bundeswehr, from 2% to 3% of gross domestic product (GDP) would give the struggling German economy a significant boost. IAB researcher Enzo Weber said the measure could lift economic growth by 1% and create thousands of new jobs in the Bundeswehr, in construction and in metal production. Germany's defence industry could receive much-needed impetus through reliable planning for investments and the recruitment of skilled workers. "If government procurement is expanded, this must be used as an opportunity to promote technology and innovation," said Weber. "The aim is to give the industry's ailing economic strength the greatest possible boost." While higher expenditure on defence would be a considerable burden for the German economy, it would ultimately be bearable if the spending is financed through additional borrowing, Weber argued. According to the report, financing extra spending on the German military by raising taxes, or through cuts to health and education budgets, would limit the positive effect on employment. Raising defence spending is a key political issue in Germany ahead of national elections on Sunday. The country hit the NATO guideline of spending 2% of GDP on the military last year, but further expenditure could be a challenge for the next government amid demands from US President Donald Trump for European countries to lift spending to 5% of GDP.
