The recession in German industry is deepening. Since 2019, approximately 245,500 jobs have been lost, and employment has fallen by 4.3%. According to EY’s report, the number of people employed in the industrial sector fell to 5.43 million in the second quarter of 2025.
Revenues are also under pressure: in the second quarter, the turnover of industrial firms was 533 billion euros, which means a 2.1% decrease year-on-year.
The hardest hit was seen in the automotive sector. Employment decreased by 6.7% year-on-year to 51,500 people.
German automotive giants Volkswagen, Mercedes and Continental are making sharp layoffs due to intense competition from Asia, the high cost of switching to electric vehicles, and US import tariffs.Exports also weakened: sales to the US fell by 10%, and sales to China fell by 14%.
