August 26, 2025 | 11:28 pm

TEMPO.CO, Jakarta - German industry's dependable decline in employment figures continues, with the country's prized automobile industry leading the pack, according to a caller survey from accounting giants EY (formerly known arsenic Ernst & Young) based connected information from the government's statistic office.
EY recorded astir 51,500 mislaid car industry jobs successful the abstraction of a year, equating to 6.7% of the sector's full workforce. This made up astir fractional of the 114,000 concern jobs mislaid successful the aforesaid clip period.
The improvement besides appears to beryllium accelerating: Since 2019, earlier the COVID-19 pandemic, astir 112,000 carmaking jobs person been mislaid successful Germany—almost fractional of them successful the past 12 months.
The US and China some contributing to car manufacture occupation cuts
The turnover of German concern companies dipped by 2.1% successful the 2nd 4th of 2025, overmuch much than the 0.3% antagonistic maturation overall. Only the electronics manufacture improved turnover successful the quarter, car companies' revenues dipped by 1.6%.
Exports to the US, Germany's largest azygous market, dipped by astir 10%, with EY's Jan Brohriker predicting that "improvement is not successful sight" given President Donald Trump's instauration of new, somewhat higher tariffs—at 15% for cars.
But a crisp dip successful exports to China is besides impacting the car industry. Long Germany's 2nd astir lucrative export market, China has slipped to sixth successful the rankings, with a 14% year-on-year dip successful the past quarter.
"The US and China are presently the origin of large concerns," Brohriker said. "The Chinese marketplace was peculiarly charismatic to the automobile manufacture for a agelong time, with precise ample margins. But successful the meantime the upwind has turned, peculiarly for overseas carmakers: request is dropping drastically and turnover is collapsing."
The EU and China person been engaged successful a tariff conflict of their ain recently, particularly over China's cheaper electrical cars, and the rapidly increasing Chinese car industry is covering much and much of home request itself.
Why Germany's astatine the halfway of the belt-tightening
Major firms including Mercedes-Benz, Volkswagen, Audi, Bosch, Continental, ZF, and Porsche person each launched cost-cutting programs—and often these cutbacks commencement adjacent to location successful Germany, not astatine overseas accumulation facilities.
"Germany car companies and components manufacturers are reacting logically to the industry's hard concern with a savings drive," EY's Brohriker said. "Massive nett reductions, excess accumulation capableness and weakening export markets are making sizeable occupation cuts unavoidable—particularly successful Germany, wherever management, medication and R&D jobs are based."
EY forecast that the falling occupation numbers would apt beryllium an ongoing trend, citing ongoing restructuring and outgo simplification plans that would proceed to pb to layoffs. It besides forecast a much hard aboriginal for budding young engineers leaving schoolhouse oregon university.
"The car manufacture and instrumentality engineering assemblage is hiring considerably less young radical than successful years past," Brohriker said. "The labour marketplace for young engineers is getting uncomfortable, galore volition person to reorient themselves. We volition spot rising unemployment among assemblage graduates, which Germany hasn't experienced for a agelong time."
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