German industry lost nearly 500,000 jobs in 7 years: Study
- Industrial employment fell 7.1% between end-2018 and end-2025, while services added more than 2.2 million jobs, says Ifo Institute
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- Industrial employment fell 7.1% between end-2018 and end-2025, while services added more than 2.2 million jobs, says Ifo Institute
By Mucahithan Avcioglu
ISTANBUL (AA) - Germany's industrial sector lost nearly half a million jobs between the end of 2018 and the end of 2025, as traditional manufacturing industries contracted while employment expanded in services, the ifo Institute said Monday.
Industrial employment subject to social security contributions fell by 496,000, or 7.1%, over the period, according to a study by the Dresden branch of the Munich-based institute.
Services added more than 2.2 million jobs, with gains concentrated in health care, social services, and public administration.
The auto industry and its suppliers shed 123,500 jobs, a loss of 13%. Manufacturers of metal products cut 115,600 positions, while mechanical engineering companies reduced employment by 64,500.
Together, these three industries accounted for around 60% of industrial job losses.
- Basis for prosperity losing ground
Joachim Ragnitz, the deputy managing director of ifo Dresden, said Germany is undergoing an intensifying structural transformation, with industries that previously underpinned its prosperity losing ground.
He warned that employment growth is largely occurring outside areas where Germany was particularly productive and innovative, potentially weakening its future growth prospects.
Healthcare added 391,000 jobs, while social services, including care homes, created 357,000 positions, reflecting demand from an aging population.
Employment subject to social security contributions in public administration rose by 329,000, partly because departing civil servants were replaced by salaried employees. IT companies saw the strongest employment growth among private service providers.
The number of employees with vocational qualifications fell by 252,000, while employment among university graduates grew by 1.8 million, highlighting the risk of regional and skills mismatches between labor supply and demand.
Industrial employment declined in every German state except Hamburg, falling 8.4% in eastern Germany and 6.8% in the west.
The study uses Federal Employment Agency data and excludes self-employed workers, civil servants, and people in marginal employment known as mini-jobs.
Mücahithan Avcıoğlu