German Industry Faces Significant Job Losses Amid Economic Challenges
New data reveals German industrial sector lost over 100,000 jobs, with automotive industry heavily affected.
The German industrial sector experienced a notable contraction, with approximately 101,000 jobs lost in the past year, according to recent data from the Federal Statistical Office.
By the end of the first quarter, the industry employed 5.46 million people, marking a decrease of 1.8% compared to the previous year.
Since 2019, prior to the COVID-19 pandemic, employment in the sector has declined by a total of 217,000 jobs, reflecting a 3.8% drop.
The employment figure reached a peak of around 5.7 million in 2018.
The automotive sector was particularly hard hit, with around 45,400 jobs eliminated.
Various industrial companies are reportedly under immense pressure due to several factors.
Jan Brorhilker, the chief executive of EY, highlighted that aggressive competition, notably from China, is driving prices down.
Additionally, weakening key sales markets and stagnating demand across Europe are exacerbating the industry's difficulties, along with significant uncertainty regarding the U.S. market.
At the same time, companies are grappling with rising operational costs, particularly in energy and labor.
Looking ahead, further job losses appear inevitable.
Brorhilker estimates that at least 70,000 more positions in the industry could be lost by the end of the year.
Many businesses, especially in machinery and automotive manufacturing, have initiated cost-reduction programs.
According to Brorhilker, the trend of unfavorable news is likely to continue before any signs of recovery emerge.
By the end of the first quarter, the industry employed 5.46 million people, marking a decrease of 1.8% compared to the previous year.
Since 2019, prior to the COVID-19 pandemic, employment in the sector has declined by a total of 217,000 jobs, reflecting a 3.8% drop.
The employment figure reached a peak of around 5.7 million in 2018.
The automotive sector was particularly hard hit, with around 45,400 jobs eliminated.
Various industrial companies are reportedly under immense pressure due to several factors.
Jan Brorhilker, the chief executive of EY, highlighted that aggressive competition, notably from China, is driving prices down.
Additionally, weakening key sales markets and stagnating demand across Europe are exacerbating the industry's difficulties, along with significant uncertainty regarding the U.S. market.
At the same time, companies are grappling with rising operational costs, particularly in energy and labor.
Looking ahead, further job losses appear inevitable.
Brorhilker estimates that at least 70,000 more positions in the industry could be lost by the end of the year.
Many businesses, especially in machinery and automotive manufacturing, have initiated cost-reduction programs.
According to Brorhilker, the trend of unfavorable news is likely to continue before any signs of recovery emerge.
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