BERLIN, April 18 (Xinhua) -- More than a third of German companies are planning to reduce their workforce in 2025, according to a survey by the German Economic Institute (IW) released on Friday, as the number of unemployed people in the country edges toward the three million mark for the first time in a decade.

The survey, which polled more than 2,000 companies, pointed to sustained pessimism in the industrial and construction sectors, despite some signs of resilience in the service sector.

Germany has been the only G7 economy to experience stagnation over the past two years. With new U.S. tariffs, economists warn that the country could face an unprecedented third straight year of recession in its post-war history.

The export climate had already deteriorated by the time the survey was conducted, with business expectations dropping to their lowest level since the 2008 global financial crisis by the end of 2024, and the fact that the Trump administration is currently imposing tariffs on global trade is exacerbating challenges for German industry, the survey noted.

Michael Groemling, head of economic analysis at the IW, said that day-to-day business is now under a huge strain. He urged the German government to "take countermeasures in close coordination with the EU to provide companies with as much stability as possible in these uncertain times." ■