Overview
- Employment fell 2.2% to just over one million positions, based on companies with at least 50 employees.
- VDMA reports more firms plan staff reductions than expansions, indicating downsizing will likely continue this year.
- The association links the pressure to U.S. tariffs, intensified competition from China, high labor costs and heavy regulation.
- After three straight years of declining output, rising orders in late 2025 have lifted expectations for a production increase in 2026.
- VDMA calls for lower social contributions and weekly rather than daily working-time limits, noting broader industrial strain that includes an estimated 47,000 auto jobs cut last year.