Job losses in Germany's industrial sector continue despite the industry recording its first sales growth in nearly three years,
according to research published Monday by consulting firm EY, cited by Reuters.
The automotive industry suffered the heaviest blow.
According to EY, employment in Germany's industrial sector fell by 127,300 (or 2.3%) year-on-year by the end of the first quarter. Since 2019 (the year before the COVID-19 pandemic), the sector has lost 341,500 jobs—a decline of just over 6%. This means that one in every 17 industrial jobs in the country has disappeared.
EY analysts note that the latest wave of layoffs was triggered by weak sales, although first-quarter data suggests a possible turning point. After 10 consecutive quarters of decline, industrial sales grew by 1.7% year-on-year.
This improvement was largely due to the metals industry, while most other sectors remained under pressure, explained EY expert Jan Brorhilker.
"After three years of continuous decline, these layoffs are now hitting companies at their core," Brorhilker emphasized.
The automotive sector has been hit the hardest, with approximately 125,800 jobs lost since 2019, including 32,000 in the past year alone.
Brorhilker warned of the risk of further layoffs. He said excess production capacity, weak domestic demand, and difficulties in key export markets could force companies to seriously consider plant closures.