According to the study “For an Economic Miracle 2.0 – How Startups and Scaleups Are Boosting the German Labor Market” But this is only the beginning. The authors believe that a direct increase in employment from 415,000 to 974,000 by 2030 is possible. However, this would require the share of startup and scaleup employees in total employment to rise to a similar level to that currently seen in Great Britain. If, however, the share could be increased even further, to the level of startup nations like the USA, this would mean the creation of more than 3 million new jobs in Germany, according to the study.
The current 415,000 employees are spread across a wide variety of sectors. The majority, 76,000, are in the area summarized in the study as "consumer goods." The second-largest sector, with 46,000 jobs, is in "transportation & travel," closely followed by 45,000 jobs in "media & marketing." However, other sectors boast the highest growth rates—measured from 2018 to 2020. The "fintech" sector ranks first with 83 percent, followed by "education" with 77 percent. Third place is shared by "transportation & travel" and "enterprise software," each with a growth rate of 68 percent.
A total of 1.6 million jobs thanks to startups and scaleups
In addition to the jobs created directly by startups, the study also points out that numerous other jobs are indirectly dependent on these young companies. The study authors base their calculations on a factor of three, based on figures from the US. Thus, in addition to the 415,000 direct jobs, the startup scene has indirectly created another 1.2 million jobs, for a total of around 1.6 million jobs.
The study was conducted by the management consultancy Roland Berger together with the Internet Economy Foundation (IE.F), the German Startups Association and Deutsche Börse.
Friedbert Pflüger, Chairman of the IE.F says:
"The relevance of the European startup and scaleup ecosystem for our economy is repeatedly emphasized. But now we have in black and white the role the startup and scaleup ecosystem plays for our labor market, our competitiveness, and the preservation of our overall prosperity. We must support this job engine so that Germany can fully develop its enormous potential. We should follow our French neighbors as a model and make startups and scaleups a top political priority."
And Christian Miele, Chairman of the Board of the Federal Association of German Startups, adds:
"The study shows that startups are a job-creating force. This must be an incentive for a new federal government to make Germany a startup nation. Startups must be at the top of the political agenda and a top priority for leaders. It must be made clear within the first 100 days that strengthening startups is a top priority."
“We need a new perception of the startup and technology scene in Germany”
Hanno Renner, Founder and CEO of Personio, commented on the study during the public presentation:
"We need a new perception of the startup and technology scene in Germany: from 'nice' innovation drivers from which the 'real' economy can learn, to one of the most important economic sectors of the future. In the US and China, many of the most valuable companies are already tech startups founded only in the last 2.5 decades. In Germany and Europe, this is also possible and necessary to secure prosperity and jobs."
