High costs, falling demand: the outlook for many companies in Saxony for 2025 is bleak. This has consequences for the labor market. With the exception of the service sector, employment is expected to fall in all economic sectors, the chambers of industry and commerce reported, citing their latest economic survey.
A total of 1,550 companies from industry, construction, trade, services, transport, hospitality and tourism - with almost 86,000 employees - took part in the survey at the beginning of the year. According to the survey, their overall business situation has deteriorated slightly within a year. According to the chambers, many companies are deeply unsettled. Almost one in three (31%) expect sales to fall, while 22% expect an increase.
Risk number 1: high labor costs
According to the survey, high labor costs, also as a result of increased wages, are cited as the main burden. They have displaced high energy prices from first place in the ranking of business risks, according to the report. The risk of weak domestic demand is now also considered to be greater. In addition, export-oriented companies see themselves under pressure from growing protectionism.
The gloomy outlook has consequences for companies' willingness to invest and hire new employees, according to the data. While 16 percent want to invest more, 27 percent would like to reduce such expenditure, it said.
Many companies are also cautious when it comes to personnel planning. Only 15 percent want to increase their staff in the coming months, while 23 percent expect to reduce their workforce. There is still a shortage of specialists and workers. "However, the economic environment, the high cost burden and declines in demand require personnel adjustments," according to the chambers.
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