Employment Loss in Germany's Industrial Sector

While Germany experienced a loss of approximately half a million jobs in the industrial sector between 2019 and 2025, more than 2.2 million new employment opportunities were created in the service sector.

According to the analysis by the Munich-based Ifo Institute titled "Germany's Sectoral Structural Change 2019–2025: What Do Employment Statistics Reveal?", a contraction of approximately 496,000 people occurred in social security-contributing employment within the industrial sector. While this situation corresponds to a 7.1 percent drop in industrial employment, approximately 60 percent of the losses originated from three main sectors: automotive, metal products, and mechanical engineering.

The automotive industry and its suppliers experienced an employment loss of 123,500, metal product manufacturers 115,600, and mechanical engineering companies 64,500. In contrast, service providers recorded strong growth with an increase of 391,000 in the healthcare sector, 357,000 in social services including nursing homes, and 329,000 in public administration. While the number of employees with vocational training decreased by 252,000, 1.8 million new job opportunities were created for university graduates.

Assessment: Joachim Ragnitz, Deputy Director of the Ifo Institute's Dresden Branch, stated that Germany is undergoing a deepening structural transformation, warning that the shrinking of key sectors that sustain prosperity and the failure of new employment areas to form in productive and innovative fields could slow down the country's future growth potential.