Overview

• By June 30, employment in German machinery firms with more than 50 staff stood at about 1.01 million, down 2 percent year-on-year and the lowest since the end of 2021.
• VDMA’s Q2 survey finds 20 percent of companies now plan to expand permanent headcount, up from 17 percent in Q1, and 29 percent expect short-time work to decline versus 19 percent anticipating a rise.
• VDMA chief economist Johannes Gernandt warns that layoffs will continue in the coming months but at a reduced pace.
• New orders have softened after a strong start to the year, with trade disputes and geopolitical uncertainty weighing on export demand.
• Persistent shortages of qualified workers are leading companies to retain core skilled staff even as they adjust their workforce.