German industry bleeds nearly 500,000 jobs amid 'structural shift'

Hundreds of thousands of jobs have been lost in German industry since 2019, according to new figures published on Monday.

German industrial businesses employed some 496,000 fewer people at the end of 2025 compared to the start of 2019, a decline of 7.1%, according to a survey conducted by the ifo Institute economic think tank.

The core automotive industry, long considered the backbone of Europe's biggest economy, has been particularly hard hit, with 123,500 jobs cuts across carmakers and suppliers, a decline of 13%.

Metal businesses also bled jobs, employing 115,600 fewer workers, while 64,500 jobs have been cut across the machinery sector, according to ifo.

By contrast, over 2.2 million additional jobs have been created in the service sector since 2019, mainly in health, social services and public administration, the institute found.

Ifo counted 391,000 new jobs in the health sector and another 357,000 additional posts in social services, including care homes, pointing to Germany's ageing population.

Joachim Ragnitz, managing director at ifo Dresden, said that the development reflected an "accelerated structural shift" in Germany.

"Ironically, the very sectors that have sustained our prosperity up to now are shrinking," he said. "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."