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German industry employment falls to ten-year low, study shows - Finance news and analysis from Global Banking & Finance Review
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German industry employment falls to ten-year low, study shows

Published by Global Banking & Finance Review

Posted on June 18, 2026

1 min read

· Last updated: June 18, 2026

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German Industry Employment Drops to Ten-Year Low, Study Reveals

Key Findings from the German Economic Institute Study

By Maria Martinez

Employment Trends in German Industry

BERLIN, June 18 (Reuters) - The number of people employed in German industry in 2025 fell to a 10-year low of just 6.6 million workers, a study by the German Economic Institute (IW) showed on Thursday. 

Factors Behind the Decline

  • The decline was not driven by rising numbers of dismissals by employers but by hesitation to refill vacancies and hire new staff
Expert Insights
  • "The decline in new hires is a warning signal for future employment trends," said Luisa Kunze, labour market expert at the Bertelsmann Stiftung, which commissioned the IW study

Industry's Role in the Labour Market

  • Industry's share of the overall labour market has fallen from 22% to 19% since 2014, fuelling the debate about deindustrialisation in Germany

Wage Competitiveness

  • Industrial companies have become less attractive to employees because their wage advantage over other sectors has roughly halved within 10 years, the study said.

(Reporting by Maria Martinez and Klaus LauerEditing by Ludwig Burger)

Key Takeaways

  • Industrial employment slid to its lowest since ~2015, dropping to about 6.6 million in 2025, signaling a deep downturn
  • The primary cause was a reluctance to refill vacancies and hire new staff, not mass dismissals
  • Industry’s labour‑market share fell from 22 % to 19 % since 2014, and wage premiums over other sectors roughly halved, raising concerns over de‑industrialisation

Frequently Asked Questions

What was the employment figure for German industry in 2025?
Employment in German industry fell to 6.6 million workers in 2025.
What caused the recent decline in German industry employment?
The decline was due to hesitation in refilling vacancies and fewer new hires, not increased dismissals.
How has industry's share of the labour market changed since 2014?
Industry's share fell from 22% to 19% of the overall labour market since 2014.
Why are industrial companies less attractive to employees?
The wage advantage of industrial companies over other sectors has halved in the past ten years.
Who commissioned the study on German industry employment?
The study was commissioned by the Bertelsmann Stiftung and carried out by the German Economic Institute.

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