MNI BRIEF: Feb German Services Job Losses Overtake Industry

Insolvencies in Germany rose by 7% in February compared with January’s figure, new research by the Leibniz Institute for Economic Research Halle (IWH) shows, with more to come. Some 11,600 jobs were lost at the top 10% of the 833 partnerships and corporations that went bust last month, up 19% on the previous year’s figure and the highest level since June 2021, the research shows.

Over the past four months the average has been almost 10,000, compared with a monthly average of around 7,000 between November and February 2016-2019. Unlike in previous months, February’s job losses most affected those in retail, office, personnel service providers and the healthcare sector rather than industry.

"The economic relevance of insolvency events has been comparatively high in recent months,” Steffen Müller, Head of the IWH Department of Structural Change and Productivity said. “We expect the number of insolvencies to continue to rise in March.”