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German Industry Sheds 124,000 Jobs in 2025 as New Surveys Point to Weak Investment and Hiring

Auto layoffs, falling sales, rising insolvencies signal further strain into 2026.

Overview

  • - EY reports 124,100 industrial jobs were eliminated in 2025 (down 2.3%), taking total losses since 2019 to about 266,200, or roughly 5%.
  • - The auto sector was worst hit with nearly 50,000 positions lost last year, while chemical/pharma and electrical industries show modest employment gains since 2019.
  • - Industry revenue fell 1.1% in 2025 and Q4 marked a tenth straight quarter of declines; insolvency cases reached about 1,480 from January to November, up 11% to the highest since 2013.
  • - A DIHK survey of around 26,000 firms finds only a quarter rate their situation as good, just 23% plan higher investment versus 31% planning cuts, 12% expect to add staff, and export expectations have inched up with 22% seeing increases.
  • - EY warns further workforce reductions are likely in 2026 unless demand improves, and a media report of a Volkswagen plan to cut group costs by about 20% by 2028 remains unconfirmed by the company.