German industries cut 101,000 jobs amid economic uncertainty: EY

Germany’s industrial sector continues to struggle with declining employment and sluggish revenue growth, according to the latest Industry Barometer released by auditing firm EY on Saturday.

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🔻 101,000 jobs lost in a year

As of the end of March 2025, the number of employees in German industrial companies had fallen by 1.8% compared to the same time last year. That equates to roughly 101,000 jobs cut across the sector.

This decline represents an acceleration in job losses:

• 1.2% decrease in 2024
• 0.9% decrease in 2023
• Since 2019 (pre-pandemic), the total decline has reached 3.8%, or around 217,000 jobs.

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Auto and Metal Industries hit hardest

The automotive sector, one of Germany’s key economic pillars, experienced the sharpest job losses, shedding almost 6% of positions, approximately 45,400 jobs in a year. The metal production and processing industry followed closely with a 4.4% decline in employment.

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Revenue decline slows, but concerns remain

While revenue also fell, the decrease was modest:

• 0.2% decline in Q1 2025 compared to Q1 2024
• Significantly smaller than the 2%+ drops seen in previous years

Still, the downward trend reflects broader economic challenges, especially in the manufacturing and export-driven industries.

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Global uncertainty dampens investment

EY’s report highlights growing concerns over geopolitical and economic uncertainty, particularly the impact of increased U.S. tariffs, which could further strain Germany’s exports. "In such an environment, growth is hardly to be expected," the report states. Companies are showing reduced willingness to invest, casting further doubt on future recovery.

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