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Job fears grow in Germany as coronavirus closes shops again

New restrictions in Germany that will shutter most shops to curb the second coronavirus wave have raised fears of thousands of job losses, industry representatives said Tuesday.

Published: 15 December 2020 15:45 CET
Job fears grow in Germany as coronavirus closes shops again
A shop worker in Bamberg urges people to shop online. Photo: DPA

Without additional government support, “up to 50,000 shops with 250,000 employees might no longer have a future,” the German Retail Association (HDE) said in a statement.

The industry can “no longer survive without tailor-made financial assistance”, the HDE added.

To curb a sharp rise in Covid-19 infections, Germany will close non-essential shops from Wednesday until at least January 10th, in addition to measures already in place since November that have closed bars, restaurants, leisure centres and cultural sites.

READ ALSO: Covid-19 worse than ever in Germany 'due to carelessness'

 

To help the affected businesses, the German government is committing €11.2 billion ($13.6 billion) a month in aid.

That includes raising the ceiling for direct aid to compensate for fixed costs to shuttered firms from €200,000 to €500,000.

With the latest restrictions falling in the middle of the year's busiest shopping season, Berliners rushed to queue up outside stores for Christmas gifts on Tuesday, AFP reporters saw.

“The usually strong sales period towards the end of the year will be a fiasco for many traders,” HDE boss Stefan Genth said.

“In the fashion trade in particular, many companies are on the verge of bankruptcy,” Genth added.

EXPLAINED: These are Germany's tough new lockdown measures

Even with the promised government support, the number of unemployed could rise by between 50,000 and 100,000 as a result of the renewed shutdowns, according to the influential IFW economic institute.

The IFW expects Germany's economy to shrink by 0.8 percent in the fourth quarter of 2020 and by 1.4 percent in the first three months of 2021, plunging Europe's economic powerhouse into a double-dip recession, despite a strong
recovery over the summer.

The government however still anticipates that the economy will expand slightly between October and December by 0.4 percent.

“I'm relatively sure we will not have a recession like in the spring,” Economy Minister Peter Altmaier said on Monday.

The government expects German output to contract by 5.5 percent in 2020, before seeing a rebound of 4.4 percent in 2021 and 2.5 percent in 2022.

READ ALSO: Germany's tougher Christmas lockdown rules are the right move – but should they have come sooner?

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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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