Industrial crisis in Germany: 10,000 jobs disappeared per month!

Industrial crisis in Germany: 10,000 jobs disappeared per month!

The German economy is currently confronted with significant challenges, particularly affecting the labor market. In the last two years, a worrying trend has become noticeable: over 10,000 jobs are being lost every month, which economist Enzo Weber describes as a “tangible industrial crisis”. The causes are complex and range from a lack of understanding of the necessary transformations in industry to a significant shortage of skilled workers. There is currently a shortage of almost 400,000 skilled workers in Germany, and forecasts suggest that this shortage could rise to 700,000 by 2027. fr.de reports that the German economy shrank in 2024 and stagnating figures are expected for 2025. This has led many companies, particularly in energy-intensive industries such as chemicals and steel, to either not hire new employees or make mass layoffs.

A survey of 169 industrial companies showed that 51% of them fear a deterioration or stagnation of the economic situation. 94% of energy-intensive companies express fears of emigration from Germany. These developments are reflected in the employment figures, as almost three million people were unemployed in September 2025. The automotive industry is particularly affected, as it has lost competitiveness and is cutting jobs, while new jobs are mostly being created in the areas of renewable energy, care, healthcare and trade. Nevertheless, the new jobs do not adequately compensate for the loss in other sectors, which leads to a worsening of the labor market situation. Deutschlandfunk points out that many employers are faced with requirements that often do not match the qualifications of job seekers.

Skilled labor shortage and its causes

The shortage of skilled workers remains one of the biggest challenges for the labor market in Germany. This is also reinforced by demographic developments; the number of employed people will fall from 51 million to 48 million by 2040. In order to combat the shortage, experts are of the opinion that targeted immigration is needed as well as better integration of people who are already unemployed through retraining and further training. The current unemployment figures make this clear: While the academic quota is only 3%, unemployment among academics rose by almost a fifth in 2024. At the same time, it is observed that two thirds of those who have been unemployed for a long time do not have a professional qualification. This not only leads to individual disadvantages, but also represents a hurdle for the entire economy.

The Statista reports over 387,000 open positions for qualified workers in March 2025, with the vacancy rate in Germany at 86%, well above the global average of 74%. Sectors particularly affected are sales professions, medical health professions and numerous skilled trades, in which the vacancy times are sometimes over 280 days. In addition, there were over 73,000 unfilled training positions in 2023, which makes it clear that not only existing positions, but also the training of new skilled workers must be urgently addressed in order to close the growing skills gaps.

The future of the labor market

The forecasts for the coming years predict a moderate recovery. Five economic research institutes expect the economy to grow by around 1.3 percent in 2026 and 2027, supported by expansionary fiscal policy and debt-financed investment projects. Despite these perspectives, fundamental structural weaknesses such as the shortage of skilled workers remain. Weber calls for strong support to be created for founders and start-ups in order to promote innovative technologies and thus develop new business models. This is the only way the German economy can take advantage of the opportunity to regain its leading role in industry.