Study indicates Germany hemorrhaging industrial jobs

(MENAFN) Germany's industrial sector has shed over 100,000 jobs in the past year due to ongoing economic challenges, according to a report by consulting firm EY, as cited by the German Press Agency (dpa).

Based on Federal Statistical Office data, the report reveals a 1.8% decline in industrial employment, with 5.46 million people working in the sector as of Q1 2025—down 101,000 from the previous year. Compared to the 2019 pre-pandemic figures, industrial jobs have decreased by 217,000, a 3.8% drop.

The automotive industry suffered the most, losing approximately 45,400 jobs—a 6% decline year-over-year—bringing the sector’s workforce to 734,000 by the end of March. Other affected industries include metal production and textiles, both of which saw employment shrink by over 4%.

Jan Brorhilker, EY’s managing partner, highlighted that German manufacturers are facing intense competition, particularly from China, along with weak demand across Europe and uncertainty in the U.S. market. Rising energy and labor costs are compounding the pressure, forcing many companies to initiate cost-cutting strategies.

Brorhilker warned that a further 70,000 industrial jobs could be lost by year’s end if conditions don’t improve. The current crisis has reignited concerns about the potential deindustrialization of Germany, once a stronghold of European manufacturing.

Experts point to the sharp rise in energy prices—fueled by the breakdown of Russian gas supplies and the 2022 sabotage of the Nord Stream pipelines—as a key factor behind the sector’s decline. European gas prices reportedly quadrupled in the aftermath, placing heavy burdens on both industry and consumers.

Despite the economic strain, German Chancellor Friedrich Merz has reinforced his tough stance on Russia, pledging more sanctions and committing an additional €5 billion ($5.6 billion) in military aid to Ukraine.

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