BDI Warns of Monthly 15,000 Job Losses in German Industry Amid Competitiveness Decline

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The Federation of German Industries warned that Germany’s industrial sector is shedding approximately 15,000 jobs every month. Tanja Gönner, the group’s director general, characterised the current conditions as critical in comments to dpa. She nevertheless pointed to significant opportunities for a turnaround provided that domestic reforms are pursued vigorously. Gönner advocated investing in new technologies such as artificial intelligence and establishing policy conditions that encourage investment while supporting industrial transformation.

According to the BDI director general, innovation has long been a priority for many companies and must remain so to secure future prospects. “I am convinced that if we do our homework, we will have every opportunity again,” Gönner said. Germany has lost ground in terms of competitiveness, she added, and therefore every political decision in Germany and Europe should be judged by whether it contributes to competitiveness and helps companies become more competitive again.

Geopolitical developments like US tariff policies and China’s growing industrial dominance are weighing on the industry at a time “when we really ought to be heading to the gym to work off the excess weight we’ve put on over recent years,” Gönner said. The BDI head argued that the blend of internal structural issues and external pressures is creating exceptional strain on the German business environment.

BDI projections published in April 2026 had forecast stagnation for the year after the sector lost approximately 120,000 jobs in the preceding 12 months. That earlier pace averaged around 10,000 manufacturing jobs disappearing monthly, according to industry group assessments. The updated warning of 15,000 monthly losses reflects a deepening trend that has affected key areas including automotive production, Federal Statistical Office statistics indicate.

Gönner, who previously served as a conservative politician, emphasised the need for swift action to restore the sector’s strength. “We have every opportunity, especially in industrial production,” she said, while calling for businesses to receive the policy support required to navigate ongoing transformations successfully. The director general’s interview with dpa highlighted the importance of judging policies through the lens of their contribution to economic competitiveness.

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Industry Gulf NewsDesk is the desk responsible for Industry Gulf's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.