- Germany's industrial sector shed over 100,000 jobs in a year, with the automotive industry alone losing 45,400 positions — nearly six percent of its workforce. Total manufacturing employment dropped to 5.46 million by March 2025.
- Since 2019, Germany's manufacturing sector has lost 217,000 jobs, marking a 3.8 percent drop, with the metal and textile sectors also hit hard. Only the chemical and pharmaceutical industries remain relatively stable.
- Companies face soaring energy and labor costs, weak European demand and rising competition from China and the U.S., especially in clean energy and digital innovation.
- Experts urge Germany to undergo a dual transformation – digital (automation, AI, data-driven manufacturing) and green (clean energy, sustainable production) – to stay competitive globally.
- Industry leaders, including VDA President Hildegard Müller, are calling on the federal government to improve Germany's business environment, warning that future investments and jobs are at risk without decisive reforms.
New data from consulting firm Ernst and Young (EY) has revealed that Germany's industrial sector, once hailed as the powerhouse of European manufacturing, lost more than 100,000 jobs within a year, with the automotive industry alone accounting for nearly half of the decline.
The report, cited by Junge Freiheit, reveals that employment in Germany's manufacturing sector dropped to 5.46 million by the end of March – a 1.8 percent decrease compared to 2024. The automotive industry was the hardest hit, losing 45,400 jobs or nearly six percent of its workforce, bringing total employment down to 734,000.
Other sectors, such as metal and textiles, also saw significant declines, while the chemical and pharmaceutical industries remained relatively stable. Since 2019, Germany's manufacturing sector has lost a total of 217,000 jobs, marking a 3.8 percent reduction in employment. (Related: German economy suffers another devastating blow as BASF announces "downsizing" will be PERMANENT and IMMEDIATE.)
VDA president calls for decisive action to bring back the legacy of Germany
For decades, Germany has stood as a global symbol of engineering excellence, renowned for its precision manufacturing and industrial prowess. However, the foundations of that legacy are beginning to shift. Countries like China and the U.S. accelerate ahead in clean energy and digital innovation, but Germany has been slower to adapt.
In an article for the Finance Story, the author cited that for Germany to remain competitive in this rapidly evolving landscape, the country must undergo two major transformations. First, a digital transformation, embracing automation, artificial intelligence (AI) and data-driven manufacturing as part of the Industry 4.0 revolution. Second, a green transformation, channeling significant investment into clean energy and environmentally sustainable production to meet both regulatory demands and shifting consumer expectations.
Experts cite multiple pressures, including soaring energy and labor costs, sluggish European demand, fierce competition from China and uncertainty in the U.S. market. Further complicating this challenge is a growing concern over the nation's work ethic: with average weekly working hours hovering around just 34, among the lowest in the Organization for Economic Co-operation and Development (OECD), alongside high rates of sick leave and generous vacation policies, Germany's productivity edge may be slipping at a critical time.
"The companies are under tremendous pressure," warned EY manager Jan Brorhilker, predicting an additional 70,000 industrial job losses by year-end, particularly in mechanical and vehicle engineering. Industrial sales continue to slide, exacerbating concerns over the economic stagnation of Germany.
Criticism of the federal government's economic policies is also mounting.
Hildegard Müller, President of the German Association of the Automotive Industry (VDA), urged the government to a decisive action. "Competitiveness and site attractiveness must be the leitmotif of the new federal government," he said. Müller stressed that these investments and future jobs depend on these factors.
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Watch this episode of the "Health Ranger Report" as Mike Adams, the Health Ranger, reacts to the news that the left-wing German government is considering banning the popular conservative Alternative for Germany party.
This video is from the Health Ranger Report channel on Brighteon.com.
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