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German economic system: job cuts in trade proceed

German economic system: job cuts in trade proceed

Posted on May 25, 2026


On the finish of the primary quarter of 2026, the variety of workers at German industrial corporations was 2.3 % beneath the earlier yr’s degree. This corresponds to round 127,300 jobs fewer than within the earlier yr, in line with an evaluation by the auditing and consulting firm ​EY.

In comparison with the numbers from 2019, 341,500 industrial jobs have been misplaced for the reason that corona pandemic. This corresponds to a decline of round six %. One in 17 industrial jobs has disappeared.

The automotive and textile industries had been notably onerous hit

It falls notably sharply Job cuts within the automotive trade. EY reported that one in seven jobs have been misplaced there since 2019. Up to now twelve months, employment within the automotive trade fell by 32,000, and by a complete of round 125,800 jobs since 2019.

Based on the knowledge, the textile trade recorded even larger proportion losses, with round 22 % of jobs misplaced since 2019. Within the steel trade, employment fell by 15 %.

In opposition to the final detrimental development, solely two sectors are recording optimistic figures: ‌Within the chemical and pharmaceutical industries, employment has elevated by three % since 2019, and within the electrical trade by two %, because the EY evaluation reveals.

Weak gross sales purpose for job cuts

EY cited the weak gross sales growth as the explanation for the present job cuts, though there could also be indicators of a development reversal within the first quarter: In comparison with the identical interval final yr, industrial gross sales reportedly elevated by 1.7 % – after gross sales had declined within the earlier ten quarters.

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The slight enhance is principally because of the steel trade, mentioned EY skilled Jan Brorhilker. The approaching months will subsequently present whether or not this growth will proceed. However, Brorhilker expects additional job losses because of the poor financial state of affairs.

Based on Brorhilker, the measures taken by the federal authorities to assist the home trade have had little impact to date. “The commercial electrical energy worth or the ‌discount in company tax are vital steps ‌however they’ll solely take impact sooner or later and do little to resolve the present issues,” he mentioned.



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