Headlines
German industry sheds almost 250,000 jobs in worsening downturn, study shows
Published by Global Banking & Finance Review®
Posted on August 26, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 26, 2025
2 min readLast updated: January 22, 2026
German industry faces a downturn with 250,000 job losses since 2019, especially in car manufacturing. Exports to the US and China also decline.
BERLIN (Reuters) -The downturn in German industry is picking up speed, with almost a quarter of a million jobs lost in the sector since 2019, according to an EY study released on Tuesday.
German industrial firms generated revenue of over 533 billion euros ($623.98 billion) in the second quarter of 2025, down 2.1% year on year, EY found, citing official statistics office data. This followed a 0.2% decline in the first quarter.
The number of people employed in German industry also declined by 2.1% in the second quarter, to 5.43 million. Compared to six years ago, the workforce contracted by 4.3%, with some 245,500 jobs lost since 2019, EY said.
The sharpest fall in jobs was seen in car manufacturing, down 6.7% in the second quarter. In absolute terms, that amounted to around 51,500 jobs lost in a year.
Germany's carmakers are battling with stiff competition from Asia, a costly transition to electric vehicles and high U.S. import tariffs, with Volkswagen, Mercedes and supplier Continental among the companies cutting jobs.
While the United States remains the most important foreign market for German industrial goods, exports to the country slumped by 10% in the second quarter, the data showed. Exports to China were down 14%.
($1 = 0.8542 euros)
(Reporting by Rachel More, Editing by Friederike Heine)
Almost a quarter of a million jobs have been lost in the German industrial sector since 2019, according to an EY study.
German industrial firms generated over 533 billion euros ($623.98 billion) in revenue in the second quarter of 2025, which is a 2.1% decrease year on year.
The car manufacturing sector saw the sharpest decline, with a 6.7% drop in jobs in the second quarter, amounting to around 51,500 jobs lost in a year.
Exports to the United States, the most important foreign market for German industrial goods, slumped by 10% in the second quarter.
German carmakers are facing stiff competition from Asia, a costly transition to electric vehicles, and high U.S. import tariffs.
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