Germany’s industrial sector faced another challenging year in 2025, marked by a 1.1% drop in revenue and the loss of around 124,000 jobs, according to an analysis by consultancy firm EY.
The number of people working in the German industry fell to 5.38 million, a 2.3% decrease compared to 2024.
The automotive sector was hit the hardest, with 50,000 job losses, while the chemical and pharmaceutical industries saw a smaller reduction, losing 2,000 positions.
Jan Brorhilker of EY described the situation as a "deep crisis" for German industry.
Since 2023, revenues have declined by nearly 5%, and 2025’s fourth quarter marked the tenth consecutive quarter of economic contraction.
EY predicts that industrial employment in Germany will continue to shrink in 2026 due to weak demand and strong competition, particularly from China.
Economists, however, forecast a modest rebound in Germany’s overall economy, estimating growth of around 1% in 2026. Nonetheless, it may take time for this recovery to have a positive impact on businesses.
