Metal and electrical sector job numbers keep falling
In the metal and electrical industry of Germany, job losses continue to mount, with 3.9 million people still employed at the end of 2024, according to association figures. However, this figure represents a significant decline of around 60,000 jobs since the beginning of the year.
Despite a slight improvement in the order situation, employment in the sector continues to decline. The value of new orders in the industry increased by four percent compared to the same period last year, adjusted for price. Yet, demand has deteriorated again in recent weeks, according to the association.
Corporate restructuring and outsourcing at major firms are driving a significant portion of these job losses. Thyssenkrupp, for instance, announced plans to cut 11,000 jobs, including 6,000 through outsourcing. This restructuring involves shutting down key facilities such as the electrical steel plant in Bochum and blast furnaces in Duisburg.
Moreover, Germany's industrial base is facing systemic challenges due to global political and economic shifts. Critical sectors like semiconductor manufacturing and AI-related industrial robotics are highly dependent on non-EU inputs and face risks from export controls and compliance threats under US law. This fragile industrial ecosystem contributes to job insecurity as firms contend with disrupted supply chains and regulatory constraints.
Oliver Zander, the CEO of Gesamtmetall, has stated that the speed at which employment is declining in the metal and electrical industry shows that the federal government cannot afford any breaks. He has also emphasised the need for more bureaucracy to be reduced.
The new federal government has taken measures to provide relief and improve competitive conditions in Germany. These include reducing the electricity tax and the investment quick program. However, no new information about these measures was provided in this context.
As of May, the number of employees in the metal and electrical industry was 2.5% lower than at the same time last year. With the ongoing challenges and job losses, it remains to be seen how the sector will fare in the coming months.
[1] Thyssenkrupp to cut 11,000 jobs as part of restructuring plan, BBC News, 2025. [2] Germany's semiconductor industry faces geopolitical risks, Handelsblatt, 2025. [3] Germany's industrial production drops by 1.4% in April, Reuters, 2025. [4] Factory orders in Germany drop by 1.4% in May, Financial Times, 2025.
Business restructuring and outsourcing, as seen in Thyssenkrupp's plan to eliminate 11,000 jobs, is a significant contributor to the mounting job losses in the metal and electrical industry. To combat this trend, Oliver Zander, CEO of Gesamtmetall, has urged the federal government to speed up policy changes and reduce bureaucracy.
Despite the new federal government's efforts to support industries like manufacturing through tax reductions and investment programs, the ongoing job losses and economic challenges could threaten Germany's employment policy within the metal and electrical industry, potentially warranting a revised community policy for employment and industry stabilization.
