Almost 125,000 Jobs Disappeared in Germany's Industry

Business
BB.LV
Publiation data: 28.02.2026 17:28

За год число банкротств увеличилось на 11%.

At the same time, there is a growing wave of corporate insolvency.

Analysts from the consulting firm EY have recorded a sharp decline in employment in Germany's industry. In 2025, companies reduced their workforce by about 124,100 employees. The year before, companies had laid off another 56,000 people. Thus, the negative trend not only persists but is also intensifying.

When comparing the figures to the pre-COVID year of 2019, the situation looks even more serious. Over the past 5 years, the industrial sector has lost 266,200 jobs. This is nearly a 5% decrease from the total number of employed, as noted by bz-berlin. For Germany's economy, where industry traditionally plays a key role, this is a significant indicator.

The Automotive Industry Under the Most Pressure

The crisis has hit Germany's automotive sector particularly hard. Specifically, just last year, automakers and their suppliers cut nearly 50,000 employees. Since 2019, the total losses in the automotive industry have reached approximately 111,000 jobs. This represents a decline of 13%.

The automotive industry has long been considered the backbone of the German economy. The transition to electric vehicles, rising costs, and competition from Asian manufacturers have intensified pressure on companies. As a result, corporations are optimizing expenses and closing certain divisions.

Declining Revenue and Weak Market Dynamics

The main reason for layoffs, according to EY analysts, is falling revenue. In 2024, the turnover of industrial enterprises decreased by 1.1%. Moreover, this figure is presented without accounting for inflation. The previous year saw an even sharper decline of 3.5%.

Thus, companies are facing dual pressure. Energy and logistics costs are rising, while demand for products remains weak. As a result, businesses are reducing staff to maintain financial stability.

Three sectors have particularly noticeable declines:

automotive industry;
paper industry;
textile industry.

In these sectors, revenue has decreased by about 3%.

Are There Positive Signals?

Despite the overall decline, certain sectors are showing growth. For example, the chemical and pharmaceutical industries increased employment by 3%. Additionally, the electrical industry added about 2% of jobs.

However, these successes do not compensate for the large-scale cuts in other segments. Ultimately, the overall balance remains negative.

Increase in Bankruptcies

At the same time, there is a growing wave of corporate insolvency. From January to November, about 1,480 bankruptcy proceedings were opened. This is an 11% increase compared to the same period last year. Moreover, this figure has reached the highest level since 2013.

In Germany, the bankruptcy procedure means that a company officially acknowledges its inability to meet financial obligations. The court appoints an administrator who analyzes the assets and attempts to save the business or liquidate its property. For employees, this often means a risk of job loss.

Expert Assessment

EY representative Jan Brorhilker stated that Germany's industry is in deep crisis. According to him, only a noticeable economic upturn can stop the further reduction of employment. Otherwise, companies will continue to optimize their workforce.

The EY study is based on data from the Federal Statistical Office of Germany, which collects official economic statistics. This means that the figures reflect the real market dynamics.

What the Industrial Crisis Means for the Labor Market

The labor market is becoming less stable in traditional industrial regions.

Competition for jobs is intensifying.

Companies are increasingly investing in automation and digitalization.

Thus, Germany's industry is undergoing a structural transformation. Old models are losing efficiency, while new directions have not yet fully compensated for the losses.

Current data indicate a systemic crisis rather than a short-term downturn. If economic growth does not accelerate, the decline in industrial employment may continue in the coming years.