Thursday 28 November 2019
Audi uses the red pencil and BMW also announces savings in billions. The consolidation of the German automotive industry should fall victim to around 50,000 jobs in the sector alone this year. No need to panic, say economists.
According to a newspaper report, leading economists see no threat of mass unemployment in Germany due to expected savings and layoffs in the automotive sector. The situation in the automotive sector is serious, but there is currently no strong rise in unemployment, as they are creating new jobs, particularly in the services sector, said the president of the Ifo Institute in Monaco Clemens Fuest in the newspapers of the "Funke Media Group". However, it is foreseeable that employment cuts in the automotive sector are not over.
The president of the Kiel Institute for the World Economy (IfW), Gabriel Felbermayr, sees the cuts to work due to structural technical changes, but also to errors within the sector such as the diesel scandal. Structural change, according to Felbermayr, also implies that "new jobs are created in other areas". Even with the same car manufacturers, for example in electric mobility. The effects of job cuts on the entire German labor market are probably manageable – if anything – Felbermayr believes. "Apparently the job cuts are not sudden, but they extend over many years and take place without redundancies," said the IfW leader.
Only this year, the automotive industry has announced the reduction of approximately 50,000 jobs in Germany, according to the Director of the CAR Institute of the University of Duisburg-Essen, Ferdinand Dudenhöffer. Only recently, the Volkswagen subsidiary Audi has announced huge savings and the cancellation of thousands of jobs.