German and US firms post record earnings despite employment pressures

Major listed companies in Germany and the United States recorded record corporate earnings in the second quarter, even as domestic employment and labor income shares faced downward pressure.

According to an EY analysis, Germany’s 40 DAX companies increased operating profits by nearly 16 percent to 52.6 billion euros, driven by strong international operations. However, industrial sectors, particularly automotive, continue to eliminate tens of thousands of domestic jobs. Citing these economic pressures, business figures such as Nikolas Stihl argued that Germany can no longer afford its standard 35-hour workweek.

A parallel trend emerged in the United States, where pre-tax corporate profits reached a record $4.8 trillion, accounting for 18 percent of national income. Meanwhile, the share of income going to workers fell to 60 percent, marking its lowest point since the 1950s.

Sources: Der Spiegel, FAZ, Der Standard, Tagesschau.