Employment in German manufacturing has fallen to its lowest level in a decade, with companies increasingly choosing not to hire new employees to replace those who leave, according to a study commissioned by the Bertelsmann Foundation. (Bertelsmann), quoted by DPA, reported BTA.
The sector currently employs 6.6 million people, and its share of total employment has fallen to 19 percent from 22 percent in 2014, according to a study by the Institute for German Economics (IW).
The decline is not due to mass layoffs, but to weaker hiring activity, the study shows.
New hires and departures have largely moved in parallel, but subsequently new hires are decreasing significantly faster than existing employment relationships are ending, according to the institute.
“The decline in hiring is a warning signal for future labor market trends,“ says Luisa Kunze, labor market expert at the foundation “Bertelsmann“.
“A recovery in demand for labor in the industrial sector and more dynamism in the labor market are needed,“ she said, adding that more active hiring would create opportunities for new employees, make it easier to change jobs and help the sector renew itself.
The study also found that German industry has become less attractive to workers in recent years.
The premium for employees starting a career in the industrial sector compared to other sectors has fallen to 10.4 percent in 2024, down from 20.4 percent 10 years ago. For long-term employees, the additional pay premium has decreased to 8.7 percent, down from 16.5 percent over the same period.
This pay premium represents the additional percentage of income that workers receive simply because they chose a job in the industrial sector over a similar position in another field.
However, the study authors note that the risk of losing a job in the industry in 2024 remains lower than it was 10 years ago.