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EY: German Industry Sheds 245,000 Jobs as Exports Slide and Auto Cuts Deepen

EY attributes the slide to weaker foreign demand, new U.S. tariffs, deep auto sector restructuring.

People work at the Volkswagen (VW) electric fleet lead plant in Emden, Germany, February 18, 2025. REUTERS/Carmen Jaspersen/ File Photo
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A Volkswagen logo is pictured at Volkswagen's headquarters in Wolfsburg, Germany, April 22, 2016.     REUTERS/Hannibal Hanschke/ File Photo

Overview

  • Germany’s industrial workforce fell 2.1% in Q2 2025 to 5.43 million, with nearly 245,500 jobs lost since 2019, EY’s analysis of official data shows.
  • Sector revenues totaled over €533 billion in Q2, down 2.1% year over year after a marginal decline in Q1.
  • Car manufacturing recorded the steepest job drop, down 6.7% year over year in Q2, equal to about 51,500 positions over 12 months.
  • Cumulative autos cuts since 2019 have reached roughly 112,000 jobs as firms grapple with competition from Asia and the costly shift to EVs.
  • Exports of industrial goods fell sharply in Q2, with shipments to the United States down about 10% and to China down 14%, and EY warns further job reductions are likely.