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According to the report, based on data from the Federal Statistical Office covering companies with at least 50 employees, the number of people working in German industry dropped to 5.38 million. This is 124 thousand, or 2.3 percent, less than a year earlier.
German automotive industry affected the most
The industry turned out to be the most affected automotive sector. In 2025, approximately 50,000 people disappeared there. full-time positions. For comparison, the chemical and pharmaceutical industries had a much smoother year – the total drop in employment amounted to only approx. 2,000. jobs.
“German industry is in a deep crisis” – says Jan Brorhilker, partner at EY, quoted by Der Spiegel magazine. He points out that since 2023, industry revenues in Germany have decreased by almost 5% and “a clear economic recovery would be needed to prevent further employment contraction“.
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The decline in Germany has been going on for years. Economists say when the rebound will occur
From 2019, that is Even before the COVID-19 pandemic, the number of employees in German industry decreased by approximately 266,000, or almost 5%. In the automotive industry itself, the decline was even deeper – by as much as 13 percent, which means a loss of 111,000. jobs.
EY analysts predict that also this year, the industrial sector will continue to reduce employment. The reasons are weak demand, strong international competition and a growing wave of bankruptcies, especially among suppliers to car manufacturers. Increasingly, companies are moving production abroad, which is done at the expense of jobs in Germany.
Economists expect that After years of stagnation, the German economy will grow by approximately 1% in 2026. However, a real, broad recovery is expected to come only in 2027, when the multi-billion state spending on armaments and infrastructure will begin to have a full impact on the economic situation. Until then, German industry will have to face another difficult quarter.
