German Business Survey Predicts Job Cuts in 2026

A new survey shows German businesses are preparing for job cuts next year. The data signals a prolonged economic struggle for Europe's largest economy. The poll by the German Economic Institute IW asked 46 business associations about their 2026 hiring plans. Of those, 22 groups expect to reduce their workforce. Only nine plan to increase hiring, while 15 foresee stable employment levels. Industry sectors are predicted to be hardest hit. They are suffering from weak exports and the impact of global tariffs. The survey indicates that hopes for a quick end to Germany's economic crisis are misplaced. The downturn is now expected to continue into 2026. This news comes as European stock markets touch new records. That rally is partly driven by investor moves into safer assets, like precious metals, amid geopolitical uncertainty.