German economy wobbly, jobs increasing

German FlagThe Germans are increasingly deciding not to become their own boss, but become employees instead. The expectation is that the number of new start-up businesses this year might be the lowest since Eastern and Western Germany united.

The reason for the declining interest in starting an own business is the strong job market. Despite international markets being in turmoil, the number of jobs in the German economy seems to be increasing.

The year-on-year comparison showed that there were 550,000 more employees in February than in the same month last year, an increase of 1.4 percent. There was also a slight improvement in the monthly statistics, with some 33,000 more workers than in January.

In total, some 41.1 million Germans are currently employed.

The latest figures also show unemployment in Germany sank by 9.8 percent to 2.49 million over the past year. There were 271,000 fewer unemployed in Germany than a year ago.

As there is such an abundance of jobs fewer people are not really inclined to jumps ship and become their own boss.

The number of new start-up businesses in Germany has been falling steadily, from a high of 500,000 in 2005 down to 400,000 in 2011, according to figures from the Bonn-based IfM institute. The expectations are that this decline will continue with considerably fewer than 400,000 new start-ups in 2012, bringing it down to the lowest level seen since 1990.

Start-ups in Germany are also having trouble finding start-up capital. High tech start-ups are missing out on foreign investors, who are put off by fears of double taxation. And the ever prominent red tape ensures start-ups are driven round the bend. You really need to be very driven to want to start up your own business in Germany.

However, women would seem to be less excited by what is on offer on the job market – the number of women asking advice on starting their own companies rose from 33 percent in 2002 to 41 percent last year.

 

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