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Upper Lusatia's economic crisis deepens as jobs and residents vanish

A once-thriving region now faces ruin as factories close and young families leave. Can new policies reverse Upper Lusatia's steep decline before it's too late?

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1 min read
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The image shows a graph on a white background with text that reads "The Benefits of Increased Productivity Over the Last 35 Years Have Not Gone to the Middle Class". The graph illustrates the increase in productivity over the last 35 years, indicating that the benefits of increased productivity have not gone to the middle class.

Concerns about structural change in the Upper Lusatia - Upper Lusatia's economic crisis deepens as jobs and residents vanish

Upper Lusatia faces a deepening economic crisis as lignite mining phases out and energy costs rise. Local leaders warn that without urgent action, the region’s job market and infrastructure will suffer even further. CDU lawmaker Marko Schiemann has now called for immediate measures to prevent collapse. The region has lost 180,000 residents since 1995, with Görlitz and Bautzen districts hit hardest. Population decline continues as job opportunities shrink. By 2025, energy-intensive businesses—some employing up to 300 people—are expected to close due to soaring costs.

Schiemann, a CDU state lawmaker from Bautzen, has criticised the slow pace of structural change. He argues that current policies fail to address the scale of the crisis. To offset the loss of 10,000 industrial jobs from lignite’s phase-out, he demands targeted job creation and policy corrections. Transport links also need urgent upgrades, according to Schiemann. He has pushed for a six-lane expansion of the A4 motorway and electrification of the Dresden-to-Poland rail line. Without these improvements, he warns, the region’s economic recovery will stall.

The federal government must now recognise the severity of Upper Lusatia’s struggles. Schiemann insists that without faster structural reforms, job losses and population decline will worsen. The region’s future depends on immediate investment in jobs, energy policy, and infrastructure.

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