Overview

• A Creditreform survey reveals the highest rate of job cuts in Germany’s Mittelstand in 15 years, with over 20% of firms reducing staff.
• Job reductions have surpassed new hires for the second year in a row, reflecting deepening economic challenges.
• Employment declines have affected nearly all sectors except services, with construction hit particularly hard.
• Negative business sentiment dominates, with three consecutive surveys showing more pessimistic than optimistic outlooks.
• Structural issues, including recession effects, youth recruitment struggles, and regulatory burdens, are driving investment and hiring freezes.