Metal and electrical industry: Crisis costs over 100,000 jobs!

Metal and electrical industry: Crisis costs over 100,000 jobs!

The metal and electrical industry in Germany continues to struggle with a dramatic decline in jobs. In the first seven months of 2025, the sector lost over 100,000 jobs, and more than 100,000 jobs have been lost since September 2023. This was done by Total metal announced, describing the situation as alarming.

The current number of employees in the metal and electrical industry is approximately 3.87 million in January 2025, a significant decrease of 2.5 percent compared to the previous year. This is the 12th consecutive month in which the industry has recorded a decline in employment. The number of bankruptcies in this sector climbed by 31 percent in 2024 compared to the previous year.

Political measures and their effects

The new federal government has taken measures to relieve pressure and promote competitive conditions in the metal and electrical industries. These include, among other things, the reduction in electricity tax and an immediate investment program. Despite these measures, the situation remains tense. Total metal managing director Oliver Zander emphasizes the need for further steps to stop the decline in employment. In his statement, Zander also expressed concerns about possible deindustrialization.

The data shows growing skepticism among companies. 48 percent report a lack of orders, which highlights the difficulties in the market. In addition, 31 percent of companies are planning to reduce staff, which could further aggravate the situation. Monthly industrial job losses are currently between 7,000 and 10,000.

Economic framework conditions

Production in the metal and electrical industries fell by 6.5 percent in 2024 compared to the previous year. The gap to the pre-crisis level in 2018 is a remarkable 17 percent. Zander calls for certainty about a necessary policy change in economic and social policy in order to ensure the long-term competitiveness of companies. This includes reducing labor costs, taxes and energy prices as well as reforms and strictly necessary austerity measures.

In summary, the metal and electrical industry is at a critical point. Employers and unions must now work together to find solutions to ensure the future-proof development of this important industry. Pressure is growing on political leaders to come up with efficient solutions as companies try to navigate an increasingly challenging economic environment.

The ongoing challenges in the sector make it clear that a sustainable change of course is necessary. How South Germans reports, the number of jobs in the industry could fall to an expected 3.9 million by the end of 2024, which will significantly increase the pressure on politicians and industry decisions.