German industry has lost nearly half a million jobs since 2019, Ifo says

German Industry Lost Nearly Half a Million Jobs Since 2019, Study Finds

Key Findings from the Ifo Study on German Industry Employment

Overview of Job Losses in German Industry

BERLIN, Oct 19 (Reuters) - German industry has shed nearly half a million jobs since 2019, an Ifo study showed on Monday, as manufacturers grapple with mounting competitive pressure.

Summary of Employment Changes

Here are some key points:

Industrial Sector Job Losses

• At the end of 2025, 496,000 fewer people were working than at the start of 2019, a drop of 7.1%.

Service Sector Job Growth

• In the service sector, more than 2.2 million jobs were created, primarily in health and social services, and in public administration.

Expert Insights on Structural Shifts

• "Germany is undergoing an accelerated structural shift. Ironically, the very sectors that have sustained our prosperity up to now are shrinking," said Joachim Ragnitz, managing director at Ifo.

• "The new jobs are for the most part not being created where Germany is especially productive and innovative. That may slow down our growth potential in the future," Ragnitz said.

Sector-Specific Employment Trends

Declining Competitiveness and Sectoral Impact

• Employment is shrinking in almost all industrial sectors, which is likely a result of declining competitiveness, particularly against China, the study said.

Automotive, Metal, and Mechanical Engineering Job Cuts

• The automotive industry and its suppliers cut 123,500 jobs, a drop of 13%, manufacturers of metal products cut 115,600 jobs, while 64,500 were cut in mechanical engineering.

• These three sectors account for around 60% of the cuts, according to Ragnitz's calculations.

Reporting Credits

(Reporting by Maria Martinez, editing by Thomas Seythal)