Handwerk President: "Democracy Must Now Deliver" - Handwerk President: "Democracy Must Now Deliver"
Germany’s skilled trades sector is starting the new year in a bleak mood, with deep concerns over economic decline. Jörg Dittrich, president of the German Confederation of Skilled Crafts (ZDH), has warned that urgent reforms are needed to revive growth and protect democracy itself.
The sector is facing a prolonged downturn, with no signs of recovery expected in the coming year. While job losses remain less severe than in manufacturing, positions are still disappearing quietly. Wages, meanwhile, continue to rise due to fierce competition for skilled workers and an ageing population, putting further pressure on pricing.
Dittrich has called for a comprehensive package of measures by 2026 to strengthen the economy. He stressed the need to restore trust in entrepreneurial initiative, arguing that this is essential for sustaining both growth and social welfare systems. Greater flexibility, such as adjusting working hours, has been proposed—with safeguards to reverse changes if negative effects arise.
The 2025 coalition agreement between the CDU/CSU and SPD includes a shift from daily to weekly maximum working hours, averaging 48 hours. The Union pushed for deregulation and a weekly model, while the SPD secured electronic time recording as a protective measure. Dittrich warns that delaying action risks deeper economic decline, sharper distributional conflicts, and a rise in populism.
Germany’s struggle comes amid intense international competition. Without swift reforms, the country could face further erosion of its economic standing and social stability.
The skilled trades sector is urging immediate action to prevent long-term damage. A mix of deregulation, wage adjustments, and restored confidence in business could shape Germany’s economic future. Without these steps, the downturn may worsen, affecting jobs, wages, and broader stability.
