Investment backlog in Baden-Württemberg: DGB boss warns of dramatic consequences

Investment backlog in Baden-Württemberg: DGB boss warns of dramatic consequences

In a worrying analysis at the event in the Alte Schule, DGB state chairman Kai Burmeister made it clear that Baden-Württemberg is facing serious challenges. Unemployment in the state has increased by 10.3 percent compared to the previous year, and the number of industrial jobs has also decreased. Burmeister asked: “Is Baden-Württemberg at the end?” and pointed out the dramatic shortage of skilled workers, which is endangering the country's leading position due to transformations in the auto industry and protectionism in global trade.

The situation is exacerbated by the alarming hospital deficit ratio compared to the rest of the country. They are struggling with a declining workforce of nursing staff while at the same time increasing demand for nursing services. Burmeister reiterated the need for investment in the health sector, which is around 12 billion euros. These financial resources are urgently needed to maintain the quality of healthcare.

The housing market and investments

Another critical point that Burmeister addressed is the need for investment in social housing. Currently 1.82 billion euros are required annually, but in recent years only 1,300 additional social housing units have been built, despite extensive state funding. Burmeister called for an increase to 13,000 additional apartments per year in order to sustainably counteract this crisis.

The Economics Minister also views the discussion about increasing the minimum wage with skepticism. She fears that an increase could have a negative impact on future investments. However, Burmeister countered that every euro more in the minimum wage generates 20 million euros in additional purchasing power, which could stimulate the local economy.

The situation on the labor market

Olga Schwalbe from the Federal Employment Agency in Nuremberg also commented on the current situation on the labor market. She reported an increasing shortage of skilled workers in many industries. In particular, people who lose their jobs find it increasingly difficult to find new employment, especially if they do not have a professional qualification. Eight out of ten reported positions are aimed at skilled workers and academics, while there are only a few vacancies for low-skilled people.

In addition, regional disparities increase the pressure on skilled workers as the mobility of work and people is limited. The challenges facing Baden-Württemberg are noticeable on both an economic and social level and require comprehensive action and serious investments to secure the country's future.

Public investment companies play a central role in this discussion by being responsible for the infrastructure of hospitals, colleges and schools. Burmeister emphasized that these institutions should act as leverage to increase investment activity. The outlook for 2030 shows positive things, but at the same time points to the risks that the freedom for growth and prosperity requires.