Overview

• Industrial employment fell to 5.42 million as of June 30, down 2.1% year over year, with about 114,000 jobs cut and roughly 245,000 fewer positions than in 2019.
• Industry turnover declined 2.1% in Q2, the eighth straight quarterly drop, while auto sector revenues fell 1.6% with only the electronics industry bucking the trend.
• EY cites high energy costs, bureaucracy, weak domestic demand, U.S. tariffs imposed by Donald Trump, and softer China sales amid intensifying competition as key pressures.
• Major companies are tightening costs, with Mercedes‑Benz, Volkswagen, Bosch, Continental and ZF pursuing savings programs and Porsche largely winding down its Cellforce battery unit.
• Job losses extend beyond autos, including about 17,000 positions in machinery and 12,000 in metal production, even as longer‑term data show industry employment still above 2014 levels.