Employment prospects of privatised companies : survey of former Treuhand companies in October 1995

Abstract

"On l.10.l995, 2249 completely privatised companies (26.4% of the total number) with 362 000 employees (38.1%) reported an extrapolated total employment of 950 000. By the end of 1995there were expected to be 57 000 job losses, in 1996 a further 53 000 and in 1997 another 14 000 jobs were expected to be lost. After the expiry of the not particularly numerous and low promises of jobs to the Treuhandanstalt, 20% of the companies want to increase their staff level, 55% want to maintain it at its present level, and 25% want to reduce it. On the reference day there were 50 000 trainees (4.7% of the total number of employees) in the companies, only one in two is taken on after completing training. Three out of four companies want to extend or maintain their training schemes in the next two years. Of the employees, 3.9% are in part-time employment, 0.6% in 'marginal' parttime work. At least 7% of the stock corresponds to the 64 000 new employees taken on in the first three quarters of 1995, which of course stood against a reduction of 100 000 jobs. A good third of the employees is taking part in further training. Since 1991 the average wage has almost doubled to DM 3,655 and in the manufacturing industry reaches 72% of the level in western Germany; without additional wage costs this is l9% of the turnover. In 1995 the turnover per employee was approx. DM 235,000 (western Germany: DM 283,000). Measured according to the gross added value, the companies achieved around 63% of the productivity of comparable companies in western Germany in 1995. Altogether the privatised companies want to invest around DM 29 billion in 1995. In the manufacturing industry 12% of the turnover is invested, more than double the amount per employee as in western Germany. The eighth and final survey of the Treuhand companies and privatised companies was at the same time a test for the IAB establishment panel, which is to begin in mid-1996 and is to continue to follow the development of these companies." (Author's abstract, IAB-Doku) ((en))

Cite article

Wahse, J., Dahms, V., Schäfer, R. & Kühl, J. (1996): Beschäftigungsperspektiven von privatisierten Unternehmen. Befragung von ehemaligen Treuhandfirmen im Oktober 1995. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 29, No. 1, p. 106-116.