- More than 36 of Germany's industrial kingpins, including auto suppliers Continental AG CTTAY and Bosch, industrial firms Basf SE BFFAF, and Siemens AG SIEGY, have agreed to conform to redundancies at one firm and vacancies at another, training workers to move directly from job to job, Reuters reports.
- The companies looked to team up to retrain workers in software and logistics to fill a growing skills gap and avoid layoffs among workers of all ages as the economy shifts to clean energy and online shopping.
- The companies will share the costs of the initiative on a case-by-case basis.
- Germany's unemployment cost the economy €63 billion ($68 billion) in 2020.
- A study warned that Germany could lose 100,000 jobs linked to the internal combustion engine by 2025 if carmakers failed to transition fast to electric vehicles and retrain workers.
- Germany's number of open vacancies surged from 0.32 million in 2009 to 0.85 million in March 2022.
- Overseas companies like Tesla Inc TSLA helped meet the demand for skilled workers. Tesla decided to build its European electric vehicle and battery plant in Brandenburg, looking to create 12,000 new jobs.
- Tesla's move will ramp up competition for skilled workers with rival carmakers Mercedes-Benz Group AG DMLRY and Volkswagen AG VWAGY.
- Mercedes saw eagerness among younger workers willing to become more resilient by gaining new skills. In contrast, older workers opted to retire early.
- Germany's new coalition government looked to assist workers from abroad by enabling dual citizenship and improving access to apprenticeships.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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