Export -oriented industry: job cuts in mechanical engineering slows down

Export -oriented industry: job cuts in mechanical engineering slows down

Export -oriented industry
Job reduction in mechanical engineering slows down






So far there is no mass layoff, but in total the workforce shrinks. The VDMA industry association also sees “encouraging signals”.

Germany’s mechanical engineers keep their regular workers despite the progressive job cuts above the brand of one million. As of June 30 of this year, around 1.01 million people worked in industry companies with more than 50 employees, as the Association of German Machine and Plant Construction (VDMA) reports on the official statistics. However, that was two percent less than a year earlier – and it is also the lowest level since the end of 2021.



“The job cuts will probably continue in the coming months-albeit slowed down,” predicts VDMA chief economist Johannes Gernandt. Current numbers from the VDMA economy survey for the second quarter of 2025 showed the first signs of slight relaxation. However, the association does not expect a employment structure.

A little more confidence – but no trend reversal


At least compared to the first quarter of the current year, the proportion of companies that are aiming for an expansion of their regular workforce rose from around 17 to 20 percent. In addition, more companies now expect short -time work (29 percent) instead of increasing (19 percent). “This development is an encouraging signal, but it is not enough to speak of sustainable relaxation,” put Gernandt into perspective.

The export -oriented industry is under pressure. After a good start to the year, the new orders were recently declining. Customs dispute and worldwide uncertainty ensure reluctance to invest. Since specialists are rare, however, many companies strive to keep them as long as possible. Including smaller companies in mechanical and plant engineering in Germany, according to the latest VDMA estimate, more than 1.2 million people worked at the end of 2024.

dpa

Source: Stern

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