German Metal, Electrical Sectors Face Further Employment Cuts

(MENAFN) Germany's metalworking and electrical industries could experience an additional loss of 300,000 jobs over the coming two to three years as manufacturers grapple with weak capacity utilization and mounting operating expenses, an employers' association warned Wednesday.

Oliver Zander, president of the Gesamtmetall employers' association, said the two sectors had already eliminated approximately 350,000 positions over the past seven years, resulting in an annual decline of €42 billion ($47 billion) in economic value added.

“Given the underutilization of capacity, another 300,000 jobs are at risk in the metal and electrical industries alone within the next two to three years,” Zander said.

He cautioned that another wave of workforce reductions could generate an additional annual loss of approximately €35 billion in value added, bringing total employment in the industries down from around 3.7 million to 3.4 million workers.

“That would be the lowest figure since reunification in 1990,” Zander said.

German industrial manufacturers are facing mounting competitive challenges, including lower-priced Chinese products, elevated labor and electricity expenses, extensive administrative requirements and US import tariffs, according to reports.

Meanwhile, the IG Metall labor union has pointed to shortcomings in corporate management, particularly among automotive industry executives, as another contributing factor to the sector's economic difficulties.

The warning comes as tensions intensify over wages, with IG Metall seeking a 5% salary increase and union representatives urging workers to participate in warning strikes as negotiations continue.

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