A Growing Economy, Shrinking Workforces

Good economic forecast, all good?

After Economics Minister Reiche raised the German government's autumn projection last week, increasing the economic growth forecast by 0.8 percentage points to 1.3%, the International Monetary Fund has now followed suit.

For the time being, however, the economic upturn has not reached the labour market. The IAB regional forecast for 2026/2027 predicts a decline in employment in almost all German states. Growth is expected only in Berlin (+0.7%), Brandenburg and Lower Saxony (+0.1% each). The steepest losses are forecast for Saarland (-1.3%), Thuringia (-0.7%), Bremen and Saxony-Anhalt (-0.6% each), primarily affecting regions with a manufacturing presence. Structural change and demographic change are cited as the main reasons.

Consequently, it is hardly surprising that economic issues strongly shape the relationship between managers and employees. As an HR managers' survey by Randstad and the ifo Institute shows, economic pressure and cost-cutting measures (44%) dominate discussions between management and staff, followed by restructuring and job cuts, new working models, changes in leadership and innovation (12% each).

These topics also caught our attention:

• Political talent wanted! JoinPolitics is inviting applications for its next talent programme. Until 14 November, committed individuals with concrete political projects can apply via the application page for mentoring and financial support, bootcamps and access to a nationwide network.

• Menopause initiative: Germany's Federal Anti-Discrimination Commissioner, Ferda Ataman, has presented recommendations for equality during menopause. She advocates targeted awareness-raising, better medical care and more flexible working conditions.

• Mental strain at work: According to the 2026 AOK Absenteeism Report, absences due to mental illness have risen by 42% over ten years. At an average of 28.5 days of absence per case, the impact is particularly severe in social work, care and education professions.

This text first appeared as an editorial in the weekly politjobs newsletter. If you would like to receive this newsletter with the latest jobs in politics by email every Wednesday, you can subscribe here .