According to the Leibniz Institute for Economic Research Halle (IWH), the number of insolvencies registered by both individuals and corporate entities in Germany remained at a high, almost unchanged level in July. While the number of affected jobs saw a slight decrease, it continues to remain substantially higher than the levels seen prior to the Corona pandemic.
Specifically, 1,689 insolvencies were recorded in July. This represents a 1 percent decline compared to June, but it marks a 7 percent increase compared to July 2025. When compared to the period between 2016 and 2019, the current number is 75 percent higher. Among the affected sectors, nearshoring services and financial and insurance services were particularly hard hit, though the hospitality industry recorded an unusual scarcity of insolvencies.
The closures of major employers led to significant income losses for the employees involved. Focusing on the top 10 percent of insolvent companies in July, more than 13,000 jobs were impacted. This figure is a 6 percent reduction from June, yet it is a 26 percent increase compared to the same month last year. Given that the IWH’s early indicators suggest high insolvency rates are likely to persist in the coming months, the overall job figures remain well above pre-pandemic levels.
