Germany's industry in crisis: 100,000 jobs at risk!

Massive job losses are expected in the manufacturing sector in Germany by the end of 2025. According to a current study by the management consultancy EY, which was published on March 5, 2025, a further 100,000 industrial jobs could be lost. Already in 2024, 70,000 employees lost their jobs in the industry, while a total of 141,400 jobs have been lost since 2019. The decline is a direct result of the weak global economy and high energy prices.

German industry is also facing increased competition, particularly from China. Last year, the sales of German industrial companies fell by 3.8 percent compared to the previous year, which corresponds to a sales loss of around 83.6 billion euros. Particularly affected are the electrical engineering industry with a decline in sales of 7.5 percent, the metal industry with 5.1 percent and the automotive industry, which also recorded a decline of 5.0 percent. Jan Brorhilker, an expert at EY, emphasizes that employment developments respond with a lag to changes in sales, as many companies try to avoid job cuts for as long as possible.

Relocation of production abroad

The relocation of production abroad will have a negative impact on the employment situation. More and more industrial companies are deciding to make new investments outside of Germany, which is due to numerous problems in Germany. In addition, the risk of trade wars poses the danger that large industrial companies will relocate their production abroad. Despite an impending change of government, experts do not expect a positive turnaround in the industry this year. Companies are forced to reduce costs, increase flexibility and increase competitiveness in order to respond to the ongoing challenging conditions.

In addition, other sources also report on the situation in German industry. According to that EY Industry Barometer Q4 Sales of German industrial companies fell by 2.5 percent in the fourth quarter, continuing the trend of the last six quarters. Domestic demand fell 4.8 percent while exports fell 2.8 percent. The uncertainties in the global economy and on the Chinese market are particularly affecting the automotive industry, which is under pressure as it employs 760,000 people.