Germany's industrial sector continued to lose ground in 2025 amid a prolonged economic downturn. According to an analysis by consulting firm EY, cited by Der Spiegel magazine, companies in the sector cut around 124,000 jobs over the course of the year. As a result, by the end of December, the industry employed about 5.38 million people, significantly less than a year earlier.

The rate of job cuts was almost twice that of 2024, indicating a deepening of the crisis. The automotive industry was hit the hardest, with about 50,000 jobs lost. Significant losses were also recorded in the paper and textile industries. The fourth quarter of 2025 was the tenth consecutive period of decline in the industrial sector.

The situation in the industry remains extremely difficult, and without a noticeable economic upturn, it will be difficult to avoid further layoffs. Additional pressure on the labor market is exerted by a weak order book, increased international competition, and a growing number of corporate bankruptcies.

Experts predict that in 2026, the German economy could grow by about 1% of GDP, but the tangible effect on industry will not be immediate. A more significant recovery is expected only in 2027, when government investment programs in defense and infrastructure begin to take effect.