Germany's metal and electrical sectors brace for 150,000 job cuts by 2026
Germany's metal and electrical industries are facing severe financial strain. Business leaders warn that high taxes, rising energy costs, and heavy bureaucracy are forcing companies to cut back on investments. Without urgent reforms, the sector could see major job losses by 2026.
Oliver Zander, head of the employers' association Gesamtmetall, highlighted the growing pressures on businesses. He pointed to soaring energy bills, increased social security payments, and excessive red tape as key problems. Zander called for faster corporate tax reforms and stable social insurance contributions to ease the burden.
Jörg Dittrich, president of the German Crafts and Trades Association, backed these demands. He stressed the need to lower non-wage labour costs to protect jobs and competitiveness. Meanwhile, Chancellor Friedrich Merz has promised quick action to address business frustrations. The government has set up commissions to reform healthcare and pensions, but disagreements over the details remain. Investment in the chemical sector has already dropped by 34% in 2025, and the metal and electrical industries now face a potential loss of up to 150,000 jobs next year.
The crisis in Germany's industrial sectors deepens as companies reduce spending. Reforms are under discussion, but time is running short. Whether the government can act fast enough to prevent further job cuts and restore confidence remains uncertain.
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