German industry has shed nearly half a million jobs since 2019, an Ifo study showed on Monday, as manufacturers grapple with mounting competitive pressure.
Here are some key points:
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- At the end of 2025, 496,000 fewer people were working than at the start of 2019, a drop of 7.1%.
- In the service sector, more than 2.2 million jobs were created, primarily in health and social services, and in public administration.
- “Germany is undergoing an accelerated structural shift. Ironically, the very sectors that have sustained our prosperity up to now are shrinking,” said Joachim Ragnitz, managing director at Ifo.
- “The new jobs are for the most part not being created where Germany is especially productive and innovative. That may slow down our growth potential in the future,” Ragnitz said.
- Employment is shrinking in almost all industrial sectors, which is likely a result of declining competitiveness, particularly against China, the study said.
- The automotive industry and its suppliers cut 123,500 jobs, a drop of 13%, manufacturers of metal products cut 115,600 jobs, while 64,500 were cut in mechanical engineering.
- These three sectors account for around 60% of the cuts, according to Ragnitz’s calculations.
(Reporting by Maria Martinez, editing by Thomas Seythal)
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Source:
Reuters
