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Germany to have up to 760,000 new jobs by year’s end: report

Two new reports predict a boom in the German job market this year, one predicting half a million new positions, the other 760,000.

Published: 12 June 2017 17:27 CEST
Germany to have up to 760,000 new jobs by year’s end: report
Workers at Berlin game developing company Wooga. Photo: DPA.

The German Chambers of Commerce and Industry (DIHK) reported on Monday that, based on business survey results, they predict there to be half a million new jobs created this year, particularly in the medical field.

“The demand for health care services is increasing due to the demographic changes, and growing health consciousness – additional employment of 130,000 comes as a result,” said DIHK managing director Martin Wansleben in a statement.

But Professor Enzo Weber from the Institute for Employment Research (IAB) said it would be a disappointment if the number of new jobs only reached 500,000, Spiegel reported on Monday. Weber predicts that the number of new jobs with social insurance obligations would be 760,000. He also said he expected the number of positions which will be cut by companies to be very low in 2017.

SEE ALSO: Germany to see record ‘job boom’ in 2017, says report

The DIHK calculates that the number of jobs related to marketing and research created in 2017 will be significant, reaching 130,000 new jobs, specifically at advertising agencies, in market research, and at research and development institutes.

“The education sector is profiting from the higher need for training in connection to digitalization and refugees,” Wansleben added.

“Manufacturing will also again expand greatly. Exports and investments will finally rise again. We calculate 30,000 more new jobs there.”

The construction boom in Germany derived from greater housing and infrastructure needs is also expected to bring the number of related jobs to a new level, with 35,000 more positions.

Still, the DIHK report found that for the first time, more than half of firms see their business development threatened by a shortage of skilled workers. Therefore the number of new jobs will not be as high in all areas as last year.

In the hospitality industry, health care sectors, and for education services, three-quarters of companies reported such shortages. Four in five firms in the civil engineering sector also said they could not find the necessary workers.

“Strengthening the dual education system is therefore particularly important,” said Wansleben.

“In order to boost the employment potential, the compatibility of family and work must furthermore be improved – in particular through child care offers, also for marginal time during the day.”

For members

WORKING IN GERMANY

Four steps to take straight away after losing your job in Germany

Losing a job can be a nightmare situation for foreigners in Germany - but following these simple steps will get you back on your feet in no time.

Published: 10 September 2024 16:34 CEST
Updated: 15 September 2024 08:14 CEST
Four steps to take straight away after losing your job in Germany

In times of economic downturn, layoffs are far from unusual – but that doesn’t make it any more difficult for the people who find themselves suddenly left without work.

For foreigners in Germany, the situation is even more frightening. You may wonder whether your residence status is in jeopardy, how hard it will be to find another position, and whether you can support yourself while you look for another job.

Though it may be hard to think clearly at a time like this, following these four simple steps will set you in good stead to move forward – and hopefully, it won’t be long before another dream opportunity comes your way. 

1. Negotiate your terms 

Before signing or agreeing to anything, it’s crucial that you’re familiar with your rights and understand how much notice your employer has to give you and what kind of settlement you may be owed.

Generally, the rule of thumb is that you get half a month of severance for every year you worked at the company. That said, higher settlements can be negotiated in return for signing a termination agreement (Aufhebungsvertrag), so you may want to seek legal advice before settling. 

Even during a probationary period, your employer will also have to give you a certain amount of notice before your last working day. During the interim, you can either work for the company or be put on what is known as gardening leave in English, where you stay home but are paid as if you were working.

This can all be negotiated as part of a termination agreement, so you should think carefully about what works best for you and consider speaking to your labour council (Betriebsrat) or a legal specialist before making any firm decisions. You should also be aware that you have no obligation to sign any agreement and can legally dispute the layoff if you want to. 

READ ALSO: Can I get unemployment benefits in Germany if I quit my job?

2. Get all the necessary documents from your employer

Once the terms of the layoff are final, ensure that your employer gives you all the necessary documents you need to navigate the next phase of German bureaucracy.

The main two to think about first are the confirmation of work (Arbeitsbescheinung) and the confirmation of your holiday entitlement (Urlaubsbescheinigung).

The first can be sent to the Agentur für Arbeit (jobcentre) as proof of your last job and recent layoff, while the second will help your next employer calculate your vacation days for the rest of the year.

An Arbeitszeugnis, or German letter of reference

An Arbeitszeugnis, or German letter of reference. Photo: picture alliance/dpa/dpa-tmn | Zacharie Scheurer

On top of these documents, you’ll want to ask your employer for a letter of reference (Arbeitszeugnis), which is useful for finding a new job in Germany.

You should also keep hold of your last payslip and statement of earnings (Lohnsteuerabrechnung), which are helpful for tax purposes and may also be requested by the Agentur für Arbeit.

Speaking of which… 

3. Register as unemployed with the Agentur für Arbeit

As soon as you know that you are soon to be unemployed, you should register as a jobseeker with the Agentur für Arbeit. To get full unemployment benefits, you usually have to do this within three days of receiving your termination notice or at least three months before leaving.

Depending on what type of residence permit you’re on, you may or may not be entitled to long-term unemployment benefits (ALG II), but most employees are able to get unemployment insurance (ALG I), which covers a proportion of your former salary while you look for a new role.

It’s important to be a little bit careful here, as claiming long-term unemployment benefits (ALG II) can affect any future citizenship applications. Any severance pay you agree to can also result in you losing some months of unemployment benefits, so these are all factors you will have to consider while deciding on the best way forward. 

READ ALSO: What happens to your work permit if you lose your job in Germany?

4. Inform the immigration office 

If you’re on a residence permit that is linked to your job in some way, like a Blue Card or work visa, you’ll need to inform the immigration office about your change in circumstances as soon as possible.

This should be done in writing, and in German, within two weeks of receiving your termination notice.

You should include all relevant personal information, such as date of birth, residence permit type, and nationality, as well as the date of your final day at work. As proof of the layoff, you should also enclose a copy of your termination agreement or a letter from your employer. 

People enter the immigration office

For foreigners who move to Germany and settle in Berlin, a visit to the Berliner Landesamt für Einwanderung (LEA) is ultimately unavoidable. Photo: picture alliance/dpa | Britta Pedersen

In most cases, the immigration office will give you between 3 and 12 months to look for a new job. If they give you a shorter period, be aware that you may be able to negotiate an extension later on if you are struggling to find work through no fault of your own.

Above all, stay positive. Though it may feel like one door has closed, another one is sure to open. This being Germany, you may just have to wade through a sea of paperwork to get there.

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