German automotive industry with the lowest number of employees since 2005
The industry is cutting jobs massively. In terms of the number of employees, the automotive industry remains the second-largest industrial sector, according to the Federal Statistical Office.
In the first half of 2026, Germany's industrial sector has undergone significant job cuts, particularly in the automotive industry. As of June, there were 5.29 million employees in the manufacturing sector, which is 144,100 or 2.7 percent fewer than the previous year. The German Statistical Office reported on Friday that the automotive industry suffered a loss of 42,300 employees compared to the previous year, representing a 5.8 percent decline. This drop is the steepest among large industries with at least 200,000 employees.
The automotive industry now employs a record low number of people: 691,500, marking a new low since 2005, according to statisticians. They noted that this has never been a smaller workforce in the industry since that year. However, the automotive sector remains the second-largest industry in terms of employment, with machinery manufacturing leading at 905,900 employees, even though it saw a 2.7 percent decline in the first half of the year.
Other sectors, including metalworking (down 3.8 percent to 471,700), the chemical industry (down 3.6 percent to 312,000), and electric equipment manufacturers (down 3.4 percent to 374,500) also reported reduced employment figures.
Within the automotive industry, both car manufacturers and component suppliers have downsized their workforce. Interestingly, the number of employees at suppliers of body panels, chassis, and trailers increased. The export-dependent industry is facing pressure from multiple angles. Its largest customer, the United States, has imposed high import tariffs on German goods under former President Donald Trump, which dampen demand for "Made in Germany" products.
Meanwhile, China now produces many items that were previously imported from Germany, such as cars and machinery. The consequence is that German exports to China fell by more than 12 percent in the first six months compared to the previous year, to just under 37 billion euros, while sales to the US fell by around 6 percent to nearly 74 billion euros.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
