German Manufacturing Job Losses Accelerate
By Reuters | 26 Aug, 2025

Intensifying auto competition from Asia combined with slumping exports to the US and China have cost 250,000 manufacturing jobs since 2019.

eople work at the Volkswagen (VW) electric fleet lead plant in Emden, Germany, February 18, 2025. REUTERS/Carmen Jaspersen/ File Photo

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)