According to the Datev SME Index published by the FAZ, wage growth is currently the sole area showing expansion within German small and medium-sized enterprises. Data for the most recent period reveals that wages across the SME sector rose by 6.5 percent compared to the previous year’s month. In contrast, the overall revenue for these companies remained largely flat, showing only a minor increase of 0.2 percent compared to the same time last year. Furthermore, employment within the Mittelstand saw a slight contraction of 0.2 percent.
This pattern reflects ongoing trends: increasing wages, stagnant sales figures, and steady employment decline almost month over month since 2023. Commenting on these figures, Robert Mayr, Managing Director of the Datev cooperative, suggested that the situation represents “stagnation under pressure” rather than an economic recovery, citing the juxtaposition of rising pay costs against leveling revenue.
Sectoral analysis reveals varied trends for March. The construction sector experienced a steep jump in wages of 7.9 percent year-on-year, though employment declined by 1.8 percent. Within the manufacturing industry, employment dropped by 1.4 percent, while wages recorded an average increase of 6.4 percent. Similarly, the hospitality sector saw its employment numbers fall by 1.1 percent.
Earlier in the year, the Datev chief economist, Timm Bönke, had indicated signs of revitalization within the SME sector, pointing to the logistics industry-often viewed as an indicator of the broader economy-as a positive signal. However, Bönke noted that this perceived upturn spurred by logistics had since stalled in March.
