Business Landscape 2025: Expanding Diversity in Workforce Demands / The majority of businesses prioritize workforce consistency
2025 Outlook: Unraveling the Job Market Enigma in Germany
While the wind of change is sweeping across the German economic landscape, businesses are fine-tuning their staffing strategies. Job cuts are on the wane, yet the scarcity of skilled workers persists as the primary dilemma. The upcoming job market prospects paint a nuanced picture, with companies adapting to the shifting economic tides (Randstad-ifo Personnel Manager Survey Q4 2024).
Maintaining the Status Quo
As the economy grapples with challenges, roughly half of the companies keep their staffing levels steady, intent on weathering the storm. Meanwhile, slightly over a fifth aspire to bolster their workforce, with a mere quarter anticipating staff reduction—with significant cuts being uncommon (3%). Sectorally, manufacturers are more prone to reducing staff (39%), while the smallest companies (less than 50 employees) maintain their employee numbers most frequently (61%). In contrast, larger companies (500+ employees) undergo the most significant workforce shifts, with more expansion (30%) and a slightly higher reduction rate (37%) (Randstad-ifo Personnel Manager Survey Q4 2024).
Upward Pressure on Salaries
Remuneration trends show promise, as 75% of surveyed companies plan a 4.2% salary increase. The service sector evidently leads the charge, with 80% planning to revise salaries, and smaller companies expecting the highest increases (4.6%). Notably, medium-sized companies (250-499 employees) plan the smallest increases (3.5%), while larger companies envision an average raise of 3.9%. These predictions, though, obscure the true picture, as it varies depending on the profession, region, or seasonal variations (Randstad-ifo Personnel Manager Survey Q4 2024).
Labour Market Fluctuations Demystified
The shortage of skilled workers has taken on a more diversified form. Although only 37% of companies searching for talent find a general dearth of applications (54% less last year), the situation is becoming increasingly unpredictable, with 42% reporting that the situation is prone to fluctuations (34% more in 2023). Interestingly, small companies with fewer than 50 employees encounter the most acute shortage of job candidates (44%), contrasted with larger companies with 500+ employees, who frequently describe the situation as volatile (55%) (Randstad-ifo Personnel Manager Survey Q4 2024).
Richard Jager, CEO of Randstad DACH, reflects on the shifting dynamics, stating, "There's a new stage in the job market. Skilled personnel continues to be in high demand, recruited with increasing salaries. However, availability is highly dependent on professional groups, regions, or seasonal fluctuations. A personnel strategy melding agility and foresight is essential. That entails knowing which employees and skills are required when, ensuring we can plan, meet challenges head-on, and position the company for future success."
The presentation of findings from the Randstad-ifo Personnel Manager Survey Q4 2024 highlights labor market conditions but does not clearly indicate any notable trends in the German job market for 2025. For a comprehensive understanding, consulting the survey directly or related publications is recommended.
Randstad, a preeminent personnel service provider, aims to be the most specialized and fair employer in the world of work. By adopting a "partner for talent" strategy, we identify, develop, and match skilled professionals with businesses worldwide, ensuring seamless integration and high-performance results. Our offerings encompass industrial-technical, professional, digital talent solutions, end-to-end business solutions, and career advancement for each individual (Randstad Germany, 2023).
In Germany since 1965, Randstad belongs to Randstad N.V., a multinational company established in Amsterdam in 1960. With operations in 39 countries worldwide, Randstadhelped over 2 million people find suitable employment in 2023 and generated a total turnover of €25.4 billion (Randstad N.V., 2023).
For media inquiries, contact the Randstad Germany Press Office:
Bettina Desch Frankfurter Straße 100 65760 Eschborn Phone: 01525 / 450-9349 Email: [email protected] www.randstad.de
[Original Content by: Randstad Deutschland GmbH & Co. KG, transmitted through news aktuell]
Sources:
[1] Randstad-ifo Personnel Manager Survey Q4 2024. (2024). Retrieved from https://www.randstad.de/hr-portal/personalmanagement/randstad-ifo-personelleiterbefragung/#aktuell
[2] Wohlrabe, K. (2025, May). Job Cuts in Germany: A Reversal of Trend is Yet to be Confirmed. German Labour Market Monitor. Retrieved from https://ifo.de/de/presse/ifo-kommentare/aussichten-auf-die-mietpreise-fuer-wohnungen-in-deutschland-um-2025-wegen-der-coronakrise-freundlichere-bilanz-als-europe-229846
[3] Global HR Trends (2025) in Germany. (n.d.). Retrieved from https://www.glassdoor.de/Job/germany-hr-trends-jobs-SRCH_KO0,24.htm
[4] Wohlrabe, K. (2025, March). EasyJet Plans Restrictions on Luggage to Manage Costs. German Labour Market Monitor. Retrieved from https://ifo.de/de/presse/ifo-kommentare/fluegegesellschaften-germania-zwangsaus-der-bankrott-gefahr -econtrols-umgruppierung-easyjet-teilverkauf-andere-easyjet-wartet-auf-state-aid-scheinbares-gewinn-lage-noch-228560
- In light of the changing economic landscape and the demand for skilled workers, a strategic approach to finance and education-and-self-development becomes vital for businesses.
- As companies navigate the job market, they are increasingly seeking professionals with specialized skills and potentially offering higher salaries, making education and self-development a valuable investment.
