"AI-Induced Job Alterations on the Horizon" German Companies Brace for Potential Layoffs
Numerous businesses anticipate redundancies as a result of AI integration
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The integration of Artificial Intelligence (AI) in the job market may result in job losses, according to a study by the Ifo Institute[1]. The Munich-based research institute found that 27.1% of companies expect decreased employment levels due to AI over the next five years[2], while only 5.2% anticipate creating additional jobs[3]. Two-thirds of respondents foresee no changes.
Industry Shifts "Companies, particularly those in the industry, expect an accelerated structural transformation driven by AI," stated Klaus Wohlrabe, head of Ifo surveys[4]. In the industry sector, 37.3% of companies expect job cuts[2], with similar numbers in retail (29.8%)[2]. In contrast, the construction sector does not foresee significant changes[2]. Greater job growth is predicted in tech-related sectors, such as Information Technology (IT) and information processing[4].
"AI will not only be a tool for cost-cutting but also the foundation for new job profiles," explains Wohlrabe[4]. While the immediate employment impact of AI is currently moderate, in the long run, the German labor market may experience significant changes. The challenge lies in utilizing productivity gains to promote broad prosperity and alleviating potential disruptions in specific professions.
[1] ntv.de, lar/AFP[2] Ifo Institute's survey[3] German companies' economic outlook for 2025[4] Interview with Klaus Wohlrabe, head of Ifo surveys.
In response to the increasing integration of Artificial Intelligence (AI) in the job market, German companies might need to implement community policies to address potential layoffs and vocational training programs to prepare workers for new job profiles. To compensate for these changes, businesses in technology-related sectors like Information Technology (IT) and information processing might experience increased employment. This transition in the job market indicates a need for education-and-self-development focused on AI and vocational training in various industries. However, finance, business, and other sectors should also explore ways to leverage AI as a means to create new job opportunities and further their growth.
