German industry continues to lose jobs

Germany's industrial sector is facing a significant downturn, marked by a continuous loss of jobs and a bleak outlook for the near future. Last year, the industry saw the elimination of 124,000 jobs, and current projections offer little hope for improvement. The exact point at which this contraction will cease remains a major uncertainty.

Industrial employment currently constitutes approximately 19% of the total workforce in Germany. The crisis is particularly acute in the automotive sector, a cornerstone of the German economy. The Volkswagen Group, a global automotive giant, is grappling with severe difficulties. Oliver Blume, the CEO of Volkswagen, recently informed shareholders that the company is not generating sufficient profits and must therefore implement cost-saving measures.

This situation highlights the broader challenges confronting German industry, including potential shifts in global demand, increased competition, and the costs associated with transitioning to new technologies. The persistent job losses and the struggles of major companies like VW underscore the depth of the current economic pressures on Germany's traditionally strong industrial base.

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We no longer earn enough and therefore have to save.