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German Metal and Electrical Employers Warn of Tens of Thousands More Job Losses in 2026

The industry group says production in Germany no longer pays for many firms due to high taxes, energy prices and labor costs.

Overview

  • Gesamtmetall reports the sector is currently shedding nearly 10,000 jobs a month and has declined for 21 consecutive months.
  • The association says companies cannot tolerate prolonged underutilization of production and expects the negative trend to persist in the short term.
  • Employers urge the federal government to push the EU to rein in new binding legal acts after what they describe as a record year of regulatory changes.
  • Chancellor Friedrich Merz is being pressed to pursue a competitiveness course change at the February 13, 2026 EU summit, including curbing new EU acts.
  • Survey data and labor officials flag weak prospects for 2026, with only one in seven firms optimistic and job chances at a low, according to the Ifo Institute and the Federal Employment Agency.