Despite recent upward revisions to growth forecasts for Germany by economists, the crisis in the skilled trades is deepening, according to Handwerkspräsident Jörg Dittrich. The president of the Central Association of German Trades (ZDH) told the Funke-Mediengruppe newspapers that “our business climate index is at the level of the Corona pandemic, and investments have fallen to the level of the financial crisis.” He warned that without countermeasures, the trade will lose between 70,000 and 80,000 jobs annually.
In the past two years alone, more than 150,000 jobs have been lost in the skilled trades. Dittrich added that many owners lack confidence, while others simply lack the financial means, causing them to close down. He described the situation as a “silent death of businesses.” High cost of living is also putting pressure on craftspeople. Dittrich noted that individuals who spend a lot of money at the gas pump are more likely to skip a hairdresser appointment or refrain from buying a cake or piece of jewelry.
To stop this development, he demanded a reduction in additional labor costs. Furthermore, the ZDH president insisted on the fulfillment of promises made by the coalition. Dittrich informed the Funke-Mediengruppe newspapers that the agreed-upon abolition of Sunday baking bans, work time flexibility, and the reduction of energy taxes for all skilled trades businesses have not materialized.
He stated that failure to abolish creeping progression amounts to a “gradual increase in corporate tax.” He added that the planned abolition of the receipt obligation is not helpful, as a new mandatory digital receipt provision is coming, which requires high investments. Successful vocational training programs are also being scrapped or cut. The skilled trades president concluded by saying, “It is unworthy how the skilled trades are being treated.”
