German Industrial Employment Drops 7.1% Through 2025

German industrial employment declined by 7.1% between the start of 2019 and the end of 2025, resulting in the loss of approximately 496,000 jobs. Data from the ifo Institute for Economic Research indicates that mounting competitive pressure, particularly from China, drove the decline.

The automotive industry experienced the steepest losses with 123,500 job cuts, followed by the metal sector with 115,600 and the machinery sector with 64,500. Together, these three industries accounted for roughly 60% of all industrial job losses.

While industry shrank, the service sector grew by over 2.2 million jobs, with health and social services expanding to meet the needs of an aging population. Joachim Ragnitz of the ifo Institute described the trend as an "accelerated structural shift." He warned that because new jobs are not being created in the most productive and innovative sectors, Germany's future growth potential may slow.