Fall in employment in German manufacturing industry gathers pace

Over the past twelve months, the number of people employed in the manufacturing sector in Germany has fallen by approximately 120,000. While 6.79 million people were employed in manufacturing in January 2024, according to the projections of the Federal Employment Agency, the figure in January 2025 was 6.67 million. This means that employment in this field has now been falling month-on-month since August 2023. In this context, there have been especially strong falls in headcounts at small and medium-sized businesses with fewer than 250 employees.

31 Mar 2025 | Presseinfo Nr. 16

Economic climate increases the pressure to transform

The manufacturing sector responds more strongly to the overall performance of the economy than other sectors do. During the pandemic in 2020 and in the aftermath of the financial crisis in 2009, the number of workers employed in manufacturing fell more sharply than in most other areas of the economy. The sustained lacklustre economic climate is also increasing the pressure to transform, and revealing a need for structural change.

More unemployment than in previous years

At 285,000, the number of workers from the manufacturing sector who registered as unemployed in 2024 was also significantly higher than it was in previous years. Despite the difficult situation, however, slightly more people (162,000) started a job in this field in 2024 than did in the previous year. Overall, the risk of unemployment for workers in the manufacturing industry still remains lower than it does in other sectors of the economy, however. There are also shortages – skilled staff are currently needed in the area of metalworking as well as in mechanical engineering and electrical engineering.

A detailed overview of the Arbeitsmarktsituation im Verarbeitenden Gewerbe (labour market situation in manufacturing industry) is available in the March edition of the statistical series “Berichte: Arbeitsmarkt Kompakt” (labour market briefing) (available in German).