Posts Tagged Employment

Rigid working times for almost 60 per cent of German employees

In Germany the majority of employees continue to work according to rigid working time models, which stipulate both the daily duration of work and the start and end time. This is the result of a survey by the Federal Statistics Office. According to this survey such an inflexible working time model applied to 58.1 per cent of employees in 2010. In comparison, merely 36.3 per cent had an influence on their working time arrangements and were able to use different forms of flexibility.

This flexibility had different characteristics: 24.1 per cent of employees had greater selection possibilities through a working time account. They merely had to reach a given total number of hours and possibly had to be present during so-called core times. A further 10.2 per cent were able to set the start and end of their working time flexibly using a flexitime regulation. 2.0 per cent of employees were completely flexible in setting their working time. Working time regulations did not play any role at all because their performance was assessed exclusively by work results.

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Temporary employment rate in German engineering at six per cent

According to a current study from the Verband Deutscher Maschinen- und Anlagenbau (VDMA, or German Engineering Federation), member companies currently employ around 57,000 temporary employees in additional to their permanently employed staff of 945,000 (status: September 2011). “The likelihood of being taken on permanently is high and our companies do not mainly use this instrument for costs reasons,” emphasised VDMA President Thomas Lindner at a press conference. According to the survey a good third of the companies assessed the chances of a temporary employee currently working for them being taken on permanently to be over 30 per cent. Lindner described temporary employment in the sector as a “bridge to permanent employment”.

Compared to previous surveys about temporary employment, the temporary employment rate in engineering has gone up from three per cent in 2005 and five per cent in 2007 to six per cent now. According to the results three out of four companies employ temporary workers. Those surveyed reported that savings were not at the forefront: 40 per cent of the companies said the financial expenditure for employing a temporary worker was comparable with that for a permanent member of staff. Borrowing workers is even the more expensive alternative for every third company. From the VDMA’s point of view, that the instrument is used nevertheless shows the positive readiness of companies to pay for the flexibility gained through temporary employment. In this manner companies avoid losing sales and revenues in time of good economic growth.

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KfW Panel: Only the “Mittelstand” is creating new jobs

Small and medium-sized enterprises (SMEs) were the engines of employment and the driving force of the German economy from 2005 to 2010. This is shown by the new KfW-Mittelstand Panel 2011. According to this, the employment growth in the whole economy of 1.8 million employees in the period specified was exclusively borne by the segment of medium-sized enterprises. According to the Panel’s results small and medium-sized enterprises were also responsible for the upturn in the employment market in 2010. While 170,000 positions were cut in the public sector and in large business in comparison with the previous year, the Mittelstand created 670,000 new jobs.

As in the employment market, investment activity among small and medium-sized enterprises also showed higher dynamism. Although investment expenditure rose last year after the sharp fall in the crisis year 2009 (-15.9 per cent), this rise only amounted to 2.8 per cent. However, from 2005-2010 gross investment of SME companies was able to grow by a total of 11.2 per cent. In comparison: large companies merely increased their investment by 6.8 per cent in the same period.

According to the results of the KfW-Mittelstand Panel, this was reflected in a stable earnings situation over the years and as a result, a continually improved equity capitalisation in the Mittelstand. Thus although SMEs posted a drop in sales of 6.2 per cent in the crisis year 2009, they were able to more than make up for this in 2010 (+6.7 per cent). The collapse in 2009 also had hardly any effects on profit margins. They was also 5.1 per cent in 2009 and thus at about the same level as the other years.

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Companies in Germany also with more staff in 2012

Companies in Germany also want to recruit more staff in the coming year. This is the result of a current poll by the Deutscher Industrie- und Handelskammertag (DIHK, or German Chambers of Industry and Commerce) as part of its current growth survey in which around 28,000 companies took part. According to the survey, it is expected that around 250,000 new jobs will be created in 2012.

According to DIHK estimates, the lion’s share of these new jobs, about 80,000, will be created in personal services including health and social services. There will be around 50,000 new appointments in the metalworking and electrical industries followed by 40,000 in science intensive services such as research and development, insurance and communications and advertising. The DIHK expects 20,000 new jobs in both temporary work and retail.

 

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Job vacancies in German logistics threaten growth

On the sidelines of the 28th German Logistics Day in Berlin the Bundesvereinigung Logistik (BVL, or German Logistics Association) pointed to the ever growing shortage of highly skilled employees. Too little attention has been paid to this development although it threatens growth and corporate success.

Currently 75 per cent of companies active in the logistics sector are having difficulties staffing unfilled positions properly, according to the results of a survey of BVL member companies. 73 per cent of those surveyed expect to suffer losses in the future as a result of the skills shortage. Not only graduates but also employees with practical vocational education are being sought, partly in vain. 26 per cent of companies reported they could not find enough drivers and deliverers. Specialists with commercial or technical training are also being sought. The job vacancies in the higher qualified segment range from heads of forwarding to heads of logistics. Engineers, IT experts and business administration graduates with a focus on supply chain management are being sought. Purchasing and production departments are also looking for top logistics experts, as are the “classic” roles of sales and distribution.

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