Survey Reveals Declining Competitiveness of Germany's Economy

A recent survey has unveiled a concerning trend among employees regarding the economic landscape in Germany, with a significant majority expressing doubts about the country's competitiveness. According to a job study conducted by the consulting firm EY, 56% of respondents believe that Germany's economic competitiveness has deteriorated over the last five years. This assessment emerged from a representative survey that included over 2,000 employees across the nation.

Only 12% of those surveyed felt that the competitiveness of the German economy had improved, while nearly a third reported no noticeable change. The perception of Germany's future economic viability is also bleak, with 43% of participants rating it as somewhat negative and 9% as very negative. Conversely, around 39% held a more optimistic view, considering the future potential of the economy positively, while 9% rated it as very positive.

Interestingly, younger employees, particularly those under 35 years of age, exhibited a more favorable outlook compared to their older counterparts. Almost 60% of the younger demographic viewed the economic future positively, compared to just 43% of those aged between 36 and 65.

Jan-Rainer Hinz, a member of EY's management team and head of human resources, highlighted the gravity of the situation, stating that the skepticism expressed by over half of the workforce regarding the competitiveness of the domestic economy is alarming. He pointed out that German industries are currently facing significant challenges amid a lack of visible economic recovery and heightened geopolitical tensions.

However, Hinz also noted that fear should not dictate actions, emphasizing potential reasons for optimism. He expressed hope that the younger workforce is maintaining their confidence in the domestic economic landscape, suggesting that motivated and well-trained employees could play a crucial role in revitalizing the economy.

The survey further identified the primary weaknesses perceived in Germany's economic environment, including bureaucratic hurdles, high energy costs, and a shortage of skilled labor. In contrast, the strengths highlighted by employees included a well-qualified labor force, high quality of life, and a stable political environment.