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‘Negative effects will occur’: No-deal Brexit threatens German jobs

A quarter of firms surveyed in Germany expect a no-deal Brexit will lead to job cuts, according to a new report.

Published: 7 March 2019 17:03 CET
'Negative effects will occur': No-deal Brexit threatens German jobs
BMW cars at the Dingolfing plant, Bavaria. Photo: DPA

That’s the picture emerging from the joint survey conducted by the Federation of German Industries (BDI) and the consultancy firm Deloitte, which asked more than 250 German firms a series of questions on how they are preparing ahead of March 29th, reported German daily FAZ on Thursday.

SEE ALSO: Prepare for Brexit – the ultimate checklist for Brits in Germany

According to the survey, a quarter of firms expect that if the UK leaves the EU without an agreement it place, it will lead to job losses in their workforce.

In the automotive and consumer goods industries, as well as in the banking sector, more than a third of companies expect that jobs will go. The UK is one of the most important export markets for cars manufactured in Germany.

“Negative effects will certainly occur. They cannot be prevented, even with the best preparation,” said BDI Managing Director Joachim Lang.

SEE ALSO: Brits across Germany urged to apply for residence permit

Damage expected

Almost half of the companies surveyed estimate the threat of damage from a no-deal exit to be high or very high. On the other hand, 41 percent said they expected a low amount of damage, 10 percent said very low and only two percent said “Brexit does not affect us”.

The researchers found that every second company has set up an emergency plan for a no-deal Brexit. For the study, a total of 262 major German companies with economic ties to the UK were surveyed last month on how they are preparing for the UK’s departure from the EU.

SEE ALSO: Brexit planning: What you need to know about Germany's plans for a no-deal

Many of those surveyed are already experiencing the effects of Brexit, reports Spiegel. A total of 45 percent report that it’s more difficult to plan business with Britain, while 35 percent have postponed investments because of the uncertainty. Meanwhile, 30 percent are suffering from the fluctuations of the British pound since the referendum.

Despite all the uncertainty, general preparations for all outcomes  are well under way. For example, 60 percent of car manufacturers surveyed have already replaced British suppliers or service providers or are planning to do so shortly.

In the retail sector, 57 percent have increased their storage capacities or plan to do so soon. The aim is that they can remain able to deliver in any possible phase of uncertainty, says Alexander Börsch, Chief Economist at Deloitte told Spiegel. “Warehouses near ports are very difficult to find at the moment,” he added.

100,000 jobs could be hit

Thursday's survey came after a study published last month revealed a no-deal Brexit could cost more than 100,000 jobs in Germany.

The research, conducted by the Leibniz Institute for Economic Research Halle (IWH) and the Martin Luther University Halle-Wittenberg, looked at the effect of a hard Brexit on different parts of Germany, and showed the automobile and technology industries would bear the brunt.

SEE ALSO: 'Horror Scenario': How Brexit could affect Germany

“In no other country is the effect on total employment as great as in Germany,” one of the authors of the study, Oliver Holtemöller, had told the newspaper Welt am Sonntag.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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