The recession of the German economy is gaining momentum

In German industry, the number of jobs decreased by 2.1% over the year. According to EY and Destatis, as of June 30, 114 thousand fewer jobs were created in German industry than a year earlier.

The automotive industry suffered the most: the sector lost 51.5 thousand employees (-6.7%). Since 2019, almost 250,000 jobs have disappeared in industry (-4.3%), of which more than 112 thousand are in the automotive industry.

EY Managing Partner Jan Brorilker noted that declining profits, excess capacity and weak foreign markets are forcing companies to make cuts. According to his forecast, restructuring and austerity programs will lead to a further reduction in employment.

In the 2nd quarter of 2025, the revenue of German industrial companies fell by 2.1% year–on-year, and in the automotive industry by 1.6%. Exports to the United States and China remain under pressure from tariffs and weak demand.

Another indicator of the recession is the drop in exports. Shipments to the United States decreased by 10%, to China – by 14%.