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For IT freelancers, finding a job in Germany is currently difficult. A combination of inflation, economic recession and ever-increasing demands from clients are presenting more and more IT freelancers with challenges. In this situation, even experienced IT professionals face unfamiliar obstacles and have to deal with the stability and future of freelance work in the IT field.
1. Inflation and uncertainty:
Inflation of 6.2% in Germany, caused by the ongoing war in Ukraine, has far-reaching economic effects. For IT freelancers in particular, this means the need to offer their services at prices that reflect the increased costs. The general uncertainty about future developments means that companies act more cautiously and projects are awarded more hesitantly.
2. Recession at home:
Germany is already in an economic recession for the third quarter in a row, which caused the gross domestic product to shrink by 0.3%. The reluctance of companies when it comes to new projects and investments has a direct impact on the demand for IT freelancers. With shrinking project budgets, outside experts are often the first to be crossed off the list, leading to a noticeable slump in orders.
3. Increasing demands from clients:
The demands of clients have skyrocketed in recent years - a development that poses particular challenges for IT freelancers. The expectation of the "perfect solution" is increasing, which raises the hurdle for many freelancers. Those who do not meet all the required criteria have a harder time acquiring orders.
4. Challenges for startups:
The once-bubbly startup scene faces its own difficulties. The bursting of the startup bubble and difficulties in raising or follow-up funding are impacting the availability of projects once offered by burgeoning startups.
5. The Impact of Rising Interest Rates:
Increasing interest rates have created a domino effect. Companies are more reluctant to make investment decisions, which is hampering demand for IT projects. At the same time, startups are also affected by this development, as financing options are narrowing.
In this demanding phase, flexibility is of the utmost importance for IT freelancers. The ability to adapt to changing market conditions, close cooperation with clients and the targeted search for niche markets could offer ways of asserting oneself in this challenging economic situation. Continuous training and the willingness to rethink existing business models are indispensable. The freelancer community is entering a period of change where adaptability and the spirit of innovation are more important than ever.
The Berlin-Brandenburg Statistics Office today published the latest data on consumer insolvencies in the first quarter of 2023. A total of 1,043 insolvency proceedings were filed against "other debtors" (including shareholders, formerly self-employed persons, consumers and estates) from January to March. This marks an increase of 2.6 percent compared to the previous year.
Outstanding accounts receivable for the period amounted to EUR 77.5 million, a decrease of 4.6 percent compared to the same period last year when accounts receivable amounted to EUR 81.2 million.
987 of the requested procedures were opened. In 40 cases, however, the case was dismissed for lack of assets, since the debtor's assets were not sufficient to cover the costs of the proceedings. In addition, 16 procedures were completed with the acceptance of a confirmed debt settlement plan.
The proceedings were spread across different groups of debtors. In the first quarter of 2023, a total of 286 insolvent former self-employed were recorded, which corresponds to an increase of 38.2 percent compared to 2022. The liabilities of this group increased by 4.0 percent to EUR 43.9 million. In contrast, 733 procedures were opened against consumers affected by insolvency, which represents a decrease of 7.2 percent compared to the previous year. The liabilities of this group fell by 8.8 percent to EUR 32.0 million. The average debt per consumer was around EUR 43,600, slightly below the level of the previous year.
Looking at consumer bankruptcies by district, most cases were recorded in Marzahn-Hellersdorf and Lichtenberg, with 98 and 82 applications, respectively. The lowest number of over-indebted people was reported in Steglitz-Zehlendorf with 36 cases. With regard to the average debt per consumer procedure, Charlottenburg-Wilmersdorf and Tempelhof-Schoeneberg stood out with values of around EUR 87,100 and EUR 57,300, which clearly exceeded the state average.
An important comment on the interpretation of the data concerns the development of consumer insolvencies since mid-2020. This should be seen in connection with a change in the law that provides for a gradual reduction in residual debt discharge procedures from six to three years. This new regulation applies to consumer insolvency proceedings that have been filed since October 1, 2020. It enables those affected to start a new business faster after the insolvency proceedings have been completed. This could explain why many over-indebted private individuals temporarily withheld their bankruptcy applications in order to benefit from the new regulation. From the beginning of 2021, these "catch-up effects" led to a sharp increase in consumer bankruptcies, which has apparently leveled off in the meantime.
Overall, the figures for consumer bankruptcies in the first quarter of 2023 in Berlin illustrate the complex economic challenges faced by individuals and formerly self-employed in an ever-changing economic landscape.
Despite economic uncertainties, the digital advertising industry remains on an impressive growth trajectory. According to a recent study by PricewaterhouseCoopers (PwC), global digital advertising revenues are expected to reach $663 billion by 2027. This encouraging scenario will particularly benefit companies that specialize in AI-powered solutions to automate and optimize digital marketing activities.
Last year, digital advertising proved to be a definitive growth factor in the entertainment and media industry. According to PwC's "Global Entertainment & Media Outlook 2023-2027," global revenues in this segment rose 8.0 percent to $484 billion in 2022. Although the pace of growth is expected to slow slightly in the coming years, the general upward trend will remain. PwC's estimates suggest that global Internet advertising revenue in the entertainment and media segment could grow at a compound annual growth rate of 6.5 percent through 2027, representing potential revenue of $663 billion.
Despite economic uncertainties, the digital advertising industry remains on an impressive growth trajectory. According to a recent study by PricewaterhouseCoopers (PwC), global digital advertising revenues are expected to reach $663 billion by 2027. This encouraging scenario will particularly benefit companies that specialize in AI-powered solutions to automate and optimize digital marketing activities.
Last year, digital advertising proved to be a definitive growth factor in the entertainment and media industry. According to PwC's "Global Entertainment & Media Outlook 2023-2027," global revenues in this segment rose 8.0 percent to $484 billion in 2022. Although the pace of growth is expected to slow slightly in the coming years, the general upward trend will remain. PwC's estimates suggest that global Internet advertising revenue in the entertainment and media segment could grow at a compound annual growth rate of 6.5 percent through 2027, representing potential revenue of $663 billion.
The positive forecast is based on the adaptation of advertising practices to the time customers spend on social media platforms, in apps, on retail platforms and on gaming websites. Digital advertising is becoming smarter, more efficient, more targeted, and more focused on specific incentives to buy.
The growth in digital advertising is expected to continue
An additional growth driver in the digital advertising industry is artificial intelligence (AI). The study by SRH Berlin University of Applied Sciences shows that almost 95 percent of the marketing managers surveyed are convinced that AI will play an increasingly important role in marketing tasks in their companies. AI makes it possible not only to generate advertising content on platforms such as Amazon, Google, Facebook and Microsoft at lightning speed, but also to adapt it optimally to the individual needs of the user.
The digital advertising industry is thus not only demonstrating resilience in the face of economic turbulence, but is also being strengthened by innovative approaches and technologies such as artificial intelligence. This opens up opportunities for companies to benefit from continued growth and offer advanced solutions for the changing world of digital advertising.
In the past year, digital advertising proved to be a significant growth factor in the entertainment and media industry. According to PwC's "Global Entertainment & Media Outlook 2023-2027," global revenues in this segment grew 8.0 percent to $484 billion in 2022. Although the pace of growth is expected to slow slightly in the coming years, the general upward trend will remain. PwC's estimates suggest that global Internet advertising revenue in the entertainment and media segment could grow at a compound annual growth rate of 6.5 percent through 2027, representing potential revenues of $663 billion.
The positive forecast is based on the alignment of advertising practices with the amount of time customers spend on social media platforms, in apps, on retail platforms and on gaming websites. Digital advertising is becoming smarter, more efficient, more targeted, and more focused on specific incentives to buy.
The growth in digital advertising is expected to continue
An additional growth driver in the digital advertising industry is artificial intelligence (AI). The study by the SRH Berlin University of Applied Sciences shows that almost 95 percent of the marketing managers surveyed are convinced that AI will have an increasing significance for marketing tasks in their companies. AI makes it possible not only to generate advertising content on platforms such as Amazon, Google, Facebook and Microsoft at lightning speed, but also to adapt it optimally to the individual needs of the user.
The digital advertising industry is thus not only demonstrating resilience in the face of economic turbulence, but is also being strengthened by innovative approaches and technologies such as artificial intelligence. This opens up opportunities for companies to benefit from continued growth and offer advanced solutions for the changing world of digital advertising.
According to a recent study by the jobs network XING in collaboration with the market research institute Appinio, every second German quits his job within the first year. The reasons for this frustrating trend not only shed light on individual motives, but also reveal deeper problems in the local work culture.
There is often a wide gap between expectations and reality. Around three quarters of people in Germany have already been dissatisfied with a new job at some point, the study shows. But what is particularly remarkable is that 80 percent of those surveyed who quit their job in the first year do not regret this step. This apparent contradiction suggests a complex tension between working conditions and personal feelings.
The study identifies two main reasons for early quits: A salary perceived as too low and dissatisfaction with the manager. Both factors were cited as driving motives by 43 percent of respondents. Likewise, inappropriate or poor team cultures (34 percent) contribute to employees leaving their jobs early.
But it is not only financial aspects that influence job satisfaction. Dissatisfaction with work tasks (34 percent), excessive stress levels (30 percent) and excessive overtime (26 percent) also play a significant role. Dr. Julian Stahl, labor market expert at XING, emphasizes that it is often a combination of reasons that causes employees to change jobs after a short period of time.
Interestingly, differences between genders and generations emerge. Men are more likely to feel moved to quit because of a salary that is too low, while women have more nuanced motivations, such as dissatisfaction with their manager or the team culture. Generation Y is more inclined to quit early, while older generations such as baby boomers tend to hang on longer.
The consequences of this turnover should not be underestimated. In addition to personal consequences for employees and employers, the high number of early terminations leads to additional effort and costs. Dr. Julian Stahl emphasizes the "economic damage" caused by these frictional losses.
However, the study also offers possible solutions. Personalized job searches via XING, for example, enable users to communicate their wishes and requirements for an employer in a more targeted manner. This should help to ensure that candidates and employers are a better match. Active and passive job seekers alike can benefit from this new feature.
At a time when the job market is becoming increasingly dynamic, employers should be more responsive to the needs of their employees to minimize turnover. Ultimately, the study shows that better alignment between employees and employers not only promotes individual satisfaction, but also the country's economic stability.
Analysis of price developments and their impact on different income groups
Recent inflation rates of 6.2% highlight the economic challenges consumers are facing. However, the impact of inflation is not the same for all income groups. A detailed analysis, which takes into account the weighting of expenses for different categories, shows how different the burden can be depending on the income level.
Housing costs: A significant part of the budget
For incomes of €1500, €2000 and €2500 net, housing costs take up the largest part of the budget, which is weighted at 33%. The costs for rent, mortgages or ancillary costs are therefore decisive for the standard of living. With an income of €1500, the housing costs already account for €495, which represents a significant part of the budget. With higher incomes, this amount increases accordingly.
Transport: increasing mobility costs
The Transportation category, with a weighting of 13%, includes vehicle, fuel and transportation costs. With the recent price hike of 6%, people on lower incomes in particular may feel an increase in mobility costs. With an income of €1500, this corresponds to an additional charge of €11.70 per month.
Food and beverages: Basic needs more expensive
Food and beverage spending (10% weighting) is critical for all income groups. With a price increase of 11% compared to the previous year, consumers can budget for higher expenses for their basic needs. With an income of €1500, this means additional monthly costs of €16.50.
Entertainment and culture: Leisure activities are becoming more expensive
The entertainment, leisure and culture category (11% weighting) also shows price increases of 6%. Spending on activities such as cinema, concerts or sporting events could increase. With an income of €1500, this corresponds to a monthly additional burden of €9.90.
Impact on different income brackets
The above examples illustrate how inflation affects different income brackets. Lower-income people tend to be more affected by price increases because they have to spend a larger proportion of their budget on basic needs. An increase of 6.2% in different categories can result in additional monthly expenses of around €60 for an income of €1500, while the impact is less noticeable for an income of €2500.
It is important to consider these differences in the burden of inflation when policymakers and economists analyze the impact of price increases. Managing inflation and implementing policies to support lower-income households can help offset the financial burden and mitigate social inequalities.