Decline in insolvency figures - but no trend reversal

In November, the number of insolvencies fell so low for the first time in three and a half years that it was below the level of the same month last year. However, the Leibniz Institute for Economic Research Halle (IWH) reported that this does not yet represent a trend reversal, but rather a pause for breath. According to the IWH insolvency trend, the number of insolvencies in November was 1,293, which is 17 percent fewer than in the previous month and three percent fewer than in November 2024. However, compared to an average November from 2016 to 2019 - i.e. before the coronavirus pandemic - the current figures are still 46 percent higher.

"That's a lot, it's clearly in the red," said Steffen Müller, Head of Insolvency Research at the IWH. While the high insolvency figures of previous years were mainly due to catch-up effects from the pandemic, the persistently high level can now be explained by the weak economic situation and sharp cost increases. The increase in insolvencies this year was broad-based across all sectors, Müller emphasized.

Structural crisis particularly in the south

The growth was particularly strong in the hotel and catering industry, as well as in the construction sector and among project developers. According to the IWH, the south is particularly affected, with Baden-Württemberg and Bavaria. "The south is strong in mechanical engineering and automotive supply, which is a structural crisis that is reflected in the number of insolvencies," said Müller. "What is new is that the East has caught up significantly this year - from a low level, but with growth of 25 to 30 percent."

In addition to the overall increase in the number of insolvencies among partnerships and corporations, the number of jobs affected has also risen significantly. For the current year, the IWH expects around 170,000 jobs to be affected. Before the coronavirus pandemic, the figure was less than 100,000 jobs.