The number of employees in mechanical engineering increased in 2023. However, according to the industry association, the prospects for the current year have deteriorated.
Germany’s mechanical engineering companies employed more people last year despite the economic downturn. The number of employees increased by 13,600 (plus 1.3 percent) to around 1.03 million, as the industry association VDMA announced.
However, the increase could have been greater for what it says is Germany’s largest industrial employer, it was said. At the beginning of 2023, the majority of companies were still planning to expand their permanent staff by the end of the year. Over the course of the year, however, the economic downturn became more and more noticeable.
The employment barometer from the Munich Ifo Institute has been showing since late summer that more companies in mechanical engineering want to reduce their workforce than increase their workforce, explained VDMA economic expert Olaf Wortmann. An increase in short-time work is expected in the coming months. “Companies will strive to retain their core workforce – simply because of the acute shortage of skilled workers and the demographic situation.”
The export-oriented industry is feeling the effects of the weakening global economy, among other things. Customers are holding back on orders. The association has not yet seen a trend reversal in orders. In view of the slump in orders, the VDMA recently lowered its production forecast for the current year from minus 2 to minus 4 percent.
Source: Stern
