Full deindustrialization: German industry continues to lose jobs

The German economy lost more than 70,000 jobs by the end of 2024 as a result of ongoing deindustrialization, Focus magazine writes with reference to a study by the audit and consulting firm Ernst & Young.

According to analysts' forecasts, the negative dynamics will intensify this year and will result in an additional reduction of up to 100,000 jobs. According to the author of the study, Jan Brorhilker, since layoffs occur with a delay and will be stretched over time, this trend may continue in 2026.

The report emphasizes that the automotive industry has been particularly affected by the economic crisis. This year, the number of layoffs in this industry may double and reach 40,000 jobs. Industries such as the production of electrical equipment, mechanical engineering, and the production of rubber and plastic products were also under attack.

The negative trend is connected both with the closure of enterprises and with the transfer by many companies of their production facilities abroad due to high costs in Germany. For example, Mercedes-Benz plans to significantly reduce production in Germany to 900,000 vehicles, while increasing production abroad. According to the calculations of the company's CFO Harald Wilhelm, production costs at the Hungarian plant in Kecskemet are on average 70% lower than in Germany.

In summary, the experts of the consulting firm urge the future government of Germany to immediately take measures to stop "deindustrialization, which has already gained full momentum."

"Time is running out," Brorhilker said, adding that Germany urgently needs reforms to restore the attractiveness of the industrial sector.