Berlin's Economy is Growing: 25,000 New Jobs in the German Capital
Companies in the main industries in Berlin and Brandenburg face the year 2015 with optimism, anticipating growth in both revenues and orders. This is the upshot of a survey conducted by the Business Associations of Berlin and Brandenburg (UVB) in the various sectors. It suggests that business insiders expect up to 25,000 new jobs to be created in Berlin. Optimism was greatest among start-up businesses and in the hospitality industry. Nearly as upbeat were the automotive industry, the food industry, as well as paper and packaging manufacturers.
Start-ups and Light Industrial on the Rise
As was to be expected after the positive trend of recent years, start-ups are among the businesses with high sentiment scores in all of the UVB survey categories: Take capacity utilisation, human resource development, revenues or order volumes – the outlook is bright across the board. Even the industrial sector – for many years the city's problem child – has become a major source of economic stimulus. Indeed, the survey findings suggest that it accounts for one in three jobs created. Given the persistent tourism boom in the German capital, Berlin's hotels and catering businesses are heading into the coming season with renewed confidence.
All thing considered, Berlin is expected to see an economic growth between 1.6 and 1.7 percent in 2015. For the sake of comparison: The German Government predicts a nationwide growth of 1.5 percent. Attracted by the prospering economy, the number of companies moving to Berlin is increasing, expanding the city's business diversity and with its the employment spectrum. The career opportunities in turn draw people from inside and outside Germany, looking for a brighter professional and personal future in Berlin.
More Jobs, Less Unemployment
Over the past three years, around 123,000 people moved to Berlin. In 2014, the number of gainfully employed persons totalled 1.8 million, the highest score since the year 2000. Inversely, the unemployment rate has been in decline for years. While as many as 19 percent of all Berliners were still out of work in 2005, the rate had dropped to just 11.1 percent by 2014. In fact, Berlin's labour market is one of the most dynamic anywhere in Germany. Last year alone saw the creation of 40,500 new jobs, with at least another 25,000 expected to come on-stream this year. Up to 4,000 jobs are likely to be created in the retail sector, around 3,000 in the hospitality business, and 2,000 by the communication service industry. As it so happens, two out of five jobs in Berlin are filled with new arrivals from outside Germany.