According to data from the consulting firm EY, Germany’s industrial sector has cut more than 100,000 jobs over the past year amid ongoing economic challenges. This was reported by the DPA news agency, citing an analysis based on statistics from the Federal Statistical Office.
The automotive industry was the hardest hit, losing over 45,000 jobs. As of the first quarter of 2025, approximately 5.46 million people were employed in German industry — 101,000 fewer compared to the same period last year.
EY expert Jan Broerhilker noted that the pressure on industry is mounting from all directions. In his estimation, German industry could lose at least another 70,000 jobs by the end of the year. Cost-cutting programs that include workforce reductions have already been launched in several sectors, including mechanical engineering and automobile manufacturing.
Industrial production in Germany declined by 4.5% in 2024. Despite this, Broerhilker emphasized that German industry has repeatedly shown resilience. However, to overcome the crisis, it is essential to reduce bureaucratic burdens, lower energy costs, and strengthen the domestic market. Large-scale investments in infrastructure and defense, planned by the federal government, could serve as a possible stimulus.
Germany, the largest economy in Europe, ended 2024 with a GDP decline of 0.2%, following a 0.3% drop in 2023. According to the latest forecast by the Association of German Chambers of Industry and Commerce (DIHK), another contraction of 0.3% is expected in 2025, which could lead to the longest economic downturn in the country’s post-war history.
The state of the German economy is particularly important for Central European countries, including the Czech Republic, where many companies are closely tied to the German industrial sector.
