Key facts
- German industrial employment fell to 6.6 million workers in 2025, a 10-year low.
- The decrease in employment was due to a reluctance to refill vacancies and hire new staff.
- Industrial jobs have become less attractive as the wage advantage over other sectors has diminished.
- Industry's share of the German labor market has declined from 22% to 19% since 2014.
- High energy costs and a global manufacturing slowdown are contributing factors.
Industrial employment in Germany has fallen to 6.6 million workers in 2025, marking a ten-year low, according to a study by the German Economic Institute (IW). The decline is not primarily due to dismissals but rather a hesitancy among employers to refill vacancies and hire new staff.
Luisa Kunze, a labor market expert at Bertelsmann Stiftung, which commissioned the study, warned that the decrease in new hires is a significant signal for future employment trends. The study also highlighted that industry's share of the overall labor market has shrunk from 22% in 2014 to 19% in 2025, intensifying debates about deindustrialization in Germany.
Industrial companies have become less attractive to potential employees because their wage advantage over other sectors has been roughly halved over the past decade. Factors contributing to this trend include high energy costs and a global slowdown in manufacturing demand, leading companies to adopt a cautious approach to recruitment.