Overview
- The Bertelsmann Stiftung study prepared by the Institut der deutschen Wirtschaft, published Thursday, reports industrial employment fell to about 6.6 million in 2025, the lowest level in ten years.
- Researchers say the decline is caused mainly by a sustained fall in new hires since 2019 rather than mass layoffs, as firms increasingly leave vacated positions unfilled.
- The industry's traditional wage premium has roughly halved over the past decade, narrowing entry and long‑term pay advantages and reducing the sector's attraction for workers.
- Job losses are concentrated in the metal and electrical sectors and in parts of southern and eastern Germany, while demand rises for workers with complex technical skills and for reskilling programs.
- The report highlights automation, weaker exports and structural change as root causes and has intensified pressure on policymakers ahead of a late‑June industry conference and a government reform package due by mid‑July.