German Industrial Jobs Fall Despite First Sales Growth
German industrial employment fell by 2.3 percent year-on-year in the first quarter despite a 1.7 percent rise in sales. The EY study notes that the automotive sector remains hardest hit as overcapacity and weak demand continue to drive workforce reductions across the country.
Industrial companies in Germany cut 127,300 jobs year-on-year through the first quarter of 2026 despite recording the first sales increase in three years. The 2.3% decline in employment persists as the sector has shed 341,500 positions since 2019. For investors, the data suggests that marginal revenue growth is currently insufficient to halt a deep structural contraction in Europe's largest industrial base.
### Metal Sector Drives Fragile Sales Recovery Industrial sales rose 1.7% year-on-year in the first quarter, ending a streak of 10 consecutive quarterly declines. EY expert Jan Brorhilker said the improvement was largely due to the metal industry, while most other sectors remained under pressure. Brorhilker noted that after three years of continuous declines, the downturn is now cutting into the core substance of German companies.
