Study indicates Germany losing industrial jobs

(MENAFN) Germany’s industrial sector has cut more than 100,000 jobs over the past year as the country’s economic downturn deepens, according to a study by consultancy EY, cited by the German Press Agency (dpa).

The hardest-hit industry was the automotive sector, which saw nearly 45,400 net job losses — making up nearly half of all cuts — amid weak sales and growing competition.

By the end of the first quarter of 2024, industrial employment fell by 1.8% from a year earlier, dropping to about 5.46 million. Since 2019, the number of industrial workers has gone down by 3.8% — a reduction of 217,000 — from a peak of nearly 5.7 million in 2018.

Jan Brorhilker, managing partner at EY, explained that companies are under pressure from aggressive competition — particularly from Chinese firms — weak European demand, and an uncertain US market. Rising energy and labor expenses have made it more challenging for businesses to stay competitive.

Brorhilker also predicted a further 70,000 job losses by the end of the year, noting companies in sectors like machinery and automotive are cutting back to control costs.

The report highlights struggles within Germany’s car industry, which is battling weak sales, competition from Chinese makers, and a dramatic shift toward electric vehicles. Sector employment fell nearly 6% to about 734,000 by late March. Industries like metal production and textile manufacturing also shed more than 4% of their workforce.

Some view these losses as a sign of deindustrialization — reflecting the ongoing economic effects of severed ties with Russian energy following the Nord Stream pipeline incident and subsequent European sanctions.

Despite these pressures, German Chancellor Friedrich Merz remained firm in his policy against Moscow, pledging further measures to undermine its “war machine”—including a new €5 billion ($5.6 billion) aid package for Ukraine.

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