According to a study, industrial companies in Germany have shed nearly half a million jobs since 2019—most notably in traditionally significant sectors such as the automotive industry. By the end of 2025, the number of people employed in the German industrial sector had fallen by 7.1 percent, or 496,000, compared to the beginning of 2019, the Dresden branch of the Ifo Institute reported on Monday. Meanwhile, new jobs have been created in the service sector.
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“Employment is shrinking across almost all industrial sectors, likely a consequence of declining competitiveness—particularly vis-à-vis China,” explained Joachim Ragnitz, deputy head of the Ifo Institute’s Dresden branch. “Traditional core German industries, such as the automotive and mechanical engineering sectors, are being hit especially hard.”
According to the data, the automotive industry and its suppliers cut 123,500 jobs, while manufacturers of metal products eliminated 115,600 positions. Mechanical engineering firms shed 64,500 jobs. These three sectors alone accounted for 60 percent of the total job losses, Ragnitz explained.
In contrast, the service sector saw a robust increase of 2.2 million jobs, according to the Ifo Institute. The healthcare sector added 391,000 new positions, while the social services sector—including nursing homes—gained 357,000. Ragnitz attributed this primarily to an aging population. In public administration, the number of employees subject to social security contributions grew by 329,000; however, the study notes that this was partly due to positions previously held by civil servants being filled by salaried employees.
Ringnatz spoke of an “intensified structural change” in Germany. “The very sectors that have underpinned our prosperity to date are the ones shrinking,” he explained. “New jobs are generally not being created in the areas where Germany is particularly productive and innovative. This could dampen our growth potential in the future.”
According to the Ifo Institute, the study compares data from two reference dates: December 31, 2018, and December 31, 2025. The Ifo researchers based their calculations on employment statistics from the Federal Employment Agency (BA), which cover all employees subject to mandatory social security contributions. Self-employed individuals, civil servants, and those in “mini-jobs” (low-wage, marginal employment) are not included in the BA statistics.
Author: AFP – oer/pe
Sources: AFP Press Portal