MNI BRIEF: German Bankruptcies, Layoffs To Tick Up - IWH Halle
Number of firms going bust stabilised in August and September, but building and housing sectors expected to weaken.
The number of German companies going bust is set to rise “significantly” in the coming months after stabilising over the summer, a leading think tank reported Tuesday, with construction, real estate and housing firms particularly hard hit.
Just over 1,000 partnerships and corporations declared themselves insolvent in September, around the same number as in August but 33% more than in September 2022. Some 11,500 jobs were affected at the largest 10% of firms, with industry, health and social work accounting for most jobs lost last month, according to IWH Halle’s Insolvency Trend.
"In the summer, the number of insolvencies was above the average before the Corona pandemic, but it was stable. This is likely to change now," Steffen Müller, head of the IWH's Structural Change and Productivity Department said. "As in August, our leading indicators in September point to a significant rise in insolvency figures in the fourth quarter - especially in construction and real estate and housing." (See MNI INTERVIEW: Germany Faces 10-15Y Labour Shortfall -Wise Man)