The key facts

  • Industrial employment in Germany fell by 496,000 (7.1%) from the end of 2018 to the end of 2025 — ifo Dresden study
  • The automotive industry lost 123,500 jobs (13%), metal processing 115,600, mechanical engineering 64,500; together about 60% of all losses
  • The services sector added more than 2.2 million jobs, mainly in healthcare, social services and public administration

Industry loses jobs, services grow

Employment in Germany's industrial sector, measured by the number of employees subject to social insurance contributions, fell by 496,000 people, or 7.1%, between the end of 2018 and the end of 2025. These figures were published on Monday by the Dresden branch of the Munich-based ifo Institute. At the same time, the services sector added more than 2.2 million jobs, with growth concentrated in healthcare, social services and public administration.

Biggest losses in the automotive industry and metal processing

The automotive industry and its suppliers lost 123,500 jobs, which amounts to 13% of employment in the sector. Manufacturers of metal products cut 115,600 positions, and mechanical engineering companies 64,500. These three sectors accounted for about 60% of all industrial losses.

Warning of structural shifts

Joachim Ragnitz, deputy managing director of ifo Dresden, said that Germany is undergoing intensifying structural transformation, in which sectors that previously secured the country's prosperity are losing ground. He warned that employment growth is occurring mainly outside the areas where Germany was particularly productive and innovative, which could weaken the future growth prospects of the economy.

Growth in services and changing employment structure

Healthcare added 391,000 jobs, social services, including care homes, 357,000, reflecting demand from the ageing population. Employment in public administration grew by 329,000, partly due to the replacement of departing civil servants with hired employees. Among private service providers, IT companies grew the most. The number of workers with vocational education fell by 252,000, while employment among university graduates rose by 1.8 million — this points to the risk of a regional and skills mismatch between labour supply and demand.

Regional differences and methodology

Industrial employment declined in all German states except Hamburg: by 8.4% in the eastern part of the country and by 6.8% in the western part. The study is based on data from the Federal Employment Agency and does not include the self-employed, civil servants and workers in marginal employment (mini-jobs).