The worsening downturn in German industry has resulted in almost a quarter of a million jobs being lost in the sector since 2019, with the automotive industry being particularly hurt, according to an EY study released on Tuesday.
German industrial firms generated revenue of over 533 billion euros ($623.98 billion) in the second quarter of 2025, down 2.1% year on year, EY found, citing official statistics office data. This followed a 0.2% decline in the first quarter.
The number of people employed in German industry also declined by 2.1% in the second quarter, to 5.43 million. Compared to six years ago, the workforce has contracted by 4.3%, with approximately 245,500 jobs lost since 2019, according to EY.
The sharpest decline in jobs was seen in the automotive industry, down 6.7% in the second quarter. In absolute terms, that amounted to around 51,500 jobs lost in a year.
Germany's carmakers are battling with stiff competition from Asia, a costly transition to electric vehicles and high U.S. import tariffs, with Volkswagen, Mercedes and supplier Continental among the companies cutting jobs.
Job losses extend beyond the automotive sector: machinery and metal production shed 17,000 and 12,000 positions respectively, while the chemical and pharmaceutical sectors remained largely stable.
EY warned that the trend is likely to continue, affecting new graduates and young engineers, who will face fewer opportunities for employment. The consultancy noted that the German automotive and machinery sectors are hiring significantly fewer young people than in previous years.
"We will see rising unemployment among university graduates-something that hasn't happened in Germany for a long time," Jan Brorhilker, EY managing partner, said.
While the U.S. remains the most important foreign market for German industrial goods, exports to the country declined by 10% in the second quarter, according to the data. Exports to China were down 14%.
