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Blog | 14. September 2017

BERLIN’S BOOMING ECONOMY IS A JOBS CREATION ENGINE

 

Berlin has a new magic number: 9. And it’s a number that should make Berliners really proud. It’s a number that embodies the incredible achievement of Berlin’s amazing economic upswing. The “9” stands for the percentage of Berliners who are currently without a job. Just ten years ago, the jobless rate was 15.5 percent. At no time since the fall of the Berlin Wall have so many Berliners been in secure jobs: Almost 1.4 million Berliners are now in jobs and paying social security contributions. In the space of just ten years, from 2005 to 2015, the number of secure jobs in the city increased by an impressive 29 percent.

Berlin has profited more than most from the positive general economic climate. The city with the “poor but sexy” image is richer every year, paying off more of its debts, and still has enough money left over to invest. Trade tax receipts in 2016 were 15 percent higher than the year before. And the good news doesn’t stop there: Berlin’s Senator for Finance, Matthias Kollatz-Ahnen, is looking forward to even higher tax receipts this year. During the first half of the year, his coffers were swelled by one billion Euros – 27 percent more than at the same time in 2016.

 

MORE AND MORE COMPANIES EQUALS MORE AND MORE JOBS

Berlin’s economic boom has delivered above-average growth in the City on the Spree, and this is far more than just a temporary interlude. Since 2006, Berlin’s gross domestic product has grown by an average of two percent per year. Last year’s growth, of 2.7 percent, was significantly higher than the German average (1.9 percent). And the city’s workforce is growing at an even faster rate. The IBB Investment Bank has predicted that 45,000 new jobs will be created by the end of this year. The bank’s calculations are based on the growing number of companies moving to Berlin – in 2016 alone, 123 companies moved to the German capital (Source: Berlin Partner).

 

Many of these are young companies, overwhelmingly from the healthcare and energy sectors, but also from the IT, telecommunications and digitalisation industries. It is no accident that Berlin currently boasts the second ranked start-up ecosystem in the world. According to a new survey conducted by the online room broker Nestpick, only San Francisco has a better network of founders and investors. The Nestpick study analysed statistics in five categories, including the number of start-ups and investors, the levels of salaries, taxes and social security, the quality of life, and the affordability of living in each city. Impressively, Berlin achieved fourth place worldwide. The global study analysed statistics from 85 of the world’s largest metropolises. In the overall ranking, Berlin scored highly and was only beaten by Singapore, Helsinki and San Francisco.

 

VACANCIES IN ALMOST EVERY SECTOR

In addition to Berlin’s healthy start-up scene, traditional industries and established sectors are also making a major contribution to the city’s economic success. Berlin is home to the world’s largest Siemens production site, BMW manufactures almost all of its motorcycles in the German capital, and Mercedes has just invested half a billion Euros in its Marienfelde plant. According to the Berlin-Brandenburg Office of Statistics, more than 188,000 people were employed in manufacturing industries in 2016, while 386,000 worked in trade, retail, transport and the hospitality industries – and the figures could have been even higher. As the city’s economy has surged, many sectors are struggling to find and recruit all of the additional workers they need. According to the IBB investment bank, there are currently 5,200 job vacancies in the transport, logistics and security sectors, with another 4,000 in the retail and hospitality sectors.

 

 

 

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Blog | 14. September 2017

BERLIN’S BOOMING ECONOMY IS A JOBS CREATION ENGINE

 

Berlin has a new magic number: 9. And it’s a number that should make Berliners really proud. It’s a number that embodies the incredible achievement of Berlin’s amazing economic upswing. The “9” stands for the percentage of Berliners who are currently without a job. Just ten years ago, the jobless rate was 15.5 percent. At no time since the fall of the Berlin Wall have so many Berliners been in secure jobs: Almost 1.4 million Berliners are now in jobs and paying social security contributions. In the space of just ten years, from 2005 to 2015, the number of secure jobs in the city increased by an impressive 29 percent.

Berlin has profited more than most from the positive general economic climate. The city with the “poor but sexy” image is richer every year, paying off more of its debts, and still has enough money left over to invest. Trade tax receipts in 2016 were 15 percent higher than the year before. And the good news doesn’t stop there: Berlin’s Senator for Finance, Matthias Kollatz-Ahnen, is looking forward to even higher tax receipts this year. During the first half of the year, his coffers were swelled by one billion Euros – 27 percent more than at the same time in 2016.

 

MORE AND MORE COMPANIES EQUALS MORE AND MORE JOBS

Berlin’s economic boom has delivered above-average growth in the City on the Spree, and this is far more than just a temporary interlude. Since 2006, Berlin’s gross domestic product has grown by an average of two percent per year. Last year’s growth, of 2.7 percent, was significantly higher than the German average (1.9 percent). And the city’s workforce is growing at an even faster rate. The IBB Investment Bank has predicted that 45,000 new jobs will be created by the end of this year. The bank’s calculations are based on the growing number of companies moving to Berlin – in 2016 alone, 123 companies moved to the German capital (Source: Berlin Partner).

 

Many of these are young companies, overwhelmingly from the healthcare and energy sectors, but also from the IT, telecommunications and digitalisation industries. It is no accident that Berlin currently boasts the second ranked start-up ecosystem in the world. According to a new survey conducted by the online room broker Nestpick, only San Francisco has a better network of founders and investors. The Nestpick study analysed statistics in five categories, including the number of start-ups and investors, the levels of salaries, taxes and social security, the quality of life, and the affordability of living in each city. Impressively, Berlin achieved fourth place worldwide. The global study analysed statistics from 85 of the world’s largest metropolises. In the overall ranking, Berlin scored highly and was only beaten by Singapore, Helsinki and San Francisco.

 

VACANCIES IN ALMOST EVERY SECTOR

In addition to Berlin’s healthy start-up scene, traditional industries and established sectors are also making a major contribution to the city’s economic success. Berlin is home to the world’s largest Siemens production site, BMW manufactures almost all of its motorcycles in the German capital, and Mercedes has just invested half a billion Euros in its Marienfelde plant. According to the Berlin-Brandenburg Office of Statistics, more than 188,000 people were employed in manufacturing industries in 2016, while 386,000 worked in trade, retail, transport and the hospitality industries – and the figures could have been even higher. As the city’s economy has surged, many sectors are struggling to find and recruit all of the additional workers they need. According to the IBB investment bank, there are currently 5,200 job vacancies in the transport, logistics and security sectors, with another 4,000 in the retail and hospitality sectors.

 

 

 

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