Germany is currently grappling with an economic downturn, marked by significant job losses in the industry sector. Unemployment has surged, notably in Bavaria and Baden-Württemberg, with increases of 13.4% and 10% respectively. The downturn is attributed to various factors, including structural shifts in the automotive industry and broader demographic changes.
Employment in the manufacturing sector has notably declined. By the end of 2024, the number of jobs fell by 1.2%, equating to a loss of 68,000 positions, leaving the workforce at 5.5 million. Key industries affected include electrical equipment, metal products, plastics, and the automotive sector, highlighting a trend towards deindustrialization. Only the food industry showed a slight increase in employment.
Economic experts point to geopolitical shifts and the loss of Russia as a reliable energy supplier as exacerbating factors. The potential for increased tariffs from the United States poses additional threats. Meanwhile, some sectors like repair and installation services have managed to see slight growth.
There is a growing concern about the future of Germany’s industrial landscape. Experts suggest that the country's economic struggles are partly due to the growing strength of industries in China and the United States. To counteract these trends, they advocate for swift implementation of infrastructure programs to bolster industrial resilience and competitiveness. As Germany faces these challenges, strategic responses are needed to mitigate further job losses and economic decline.
