German medium-sized companies, whose business confidence rose to a 20-year high, will create 180,000 new jobs by the end of the year, business information service Creditreform said today, citing a survey.
Creditreform’s spring business sentiment measure for German medium-sized companies rose to 55.4, the highest since reunification in 1990, from 49.2 a year ago, the company said today at a briefing in Berlin. A measure of hiring intentions remained “expansive” even as it fell to 17.2 from 20.4.
“Confidence about the development of the German economy is increasing,” Creditreform management board member Helmut Roedl told reporters. “Medium-sized companies are still very happy to hire.”
More than one in five companies plan to hire while three quarters plan to hold on to their workers and only 5 percent plan to fire staff, Roedl said. Creditreform polled 4,053 companies in March and April, he said.
Hiring is driven by larger medium-sized companies with more than 250 employees, where about 40 percent of respondents said they want to hire. All branches of the economy plan to take on staff, led by construction, Roedl said.
“The German medium-sized sector is decoupling itself from the difficult economic environment in Europe and will continue its upward trend in 2012,” Roedl said. “Sentiment couldn’t be better.”
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