Decline in Employment Continues in Metal and Electrical Industries

Mon 21st Jul, 2025

The economic landscape for the metal and electrical industries remains troubling as employment figures continue to decline. Since the start of the year, the sector has seen a reduction of approximately 60,000 jobs, according to a survey conducted by the employer association Gesamtmetall.

As of May, the number of employees in these industries was down by 2.5% compared to the same month last year, despite a slight improvement in order intake. At the end of 2024, there were still around 3.9 million people employed within this sector.

While the newly formed government has initiated several measures aimed at relieving the economic burden and enhancing competitive conditions in Germany, the pace of job losses signals an urgent need for further action. Among the measures implemented are a reduction in electricity taxes and an investment prompt program. Gesamtmetall's managing director expressed concern over the rapid continuation of job losses, emphasizing that the government cannot afford to take a break in its efforts to reduce bureaucracy.

Though there was a modest easing in the number of new orders, with a 4% increase in value from January to May compared to the previous year after adjusting for price changes, demand among companies has reportedly weakened again. This situation highlights ongoing challenges faced by the metal and electrical industries, which are grappling with a combination of reduced workforce and fluctuating market demands.


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