Layoffs in German Auto Industry Accelerate Sharply

Germany's automotive industry is experiencing a rapid acceleration of layoffs, reaching its lowest employment levels since 2005, according to the Federal Statistical Office. In the first half of the current year, the number of people employed in car factories, the nation's leading industrial sector, dropped to 691,500.

This represents a significant decrease of 42,300 workers, or 5.8%, compared to the same period last year. While job cuts are occurring in other industrial sectors as well, the pace is slower, with the manufacturing industry seeing a 2.7% decline in employment, bringing its total to 5.29 million.

The automotive industry remains Germany's second-largest industrial sector, trailing only mechanical engineering, which employs 905,900 people. Job losses have been particularly pronounced among suppliers of parts and accessories for motor vehicles, where employment has fallen by 7.6%. The car manufacturers themselves have reduced their workforce by 6.1%.

However, a smaller segment of suppliers, focusing on the production of car bodies and trailers, has seen a 10% increase in employment, reaching 42,800 workers. The German Association of the Automotive Industry had previously warned in May that up to 225,000 jobs could disappear by 2035. Several manufacturers and suppliers have recently announced cost-reduction programs and layoffs.