The German Metal and Electrical Industry Employers' Association warned on Wednesday of the potential loss of approximately 300,000 additional jobs in the sector over the next two or three years, amid continued production declines and increasing economic and competitive pressures on German companies.
German newspaper Bild quoted the association's president, Oliver Zander, as saying that the metals and electrical industries have already lost around 350,000 jobs over the past seven years, resulting in annual value-added losses estimated at 42 billion euros. Zander added that underutilization of production capacities threatens further job losses, noting that additional economic losses could reach around 35 billion euros annually.
According to the association's estimates, approximately 3.7 million people are currently employed in metals and electrical industry companies in Germany, while this number could drop to 3.4 million, the lowest level since German reunification in 1990. German companies face multiple challenges, most notably increasing price competition from China, rising energy and labor costs, as well as bureaucratic burdens and US tariffs.
For its part, the Metal Workers' Union attributes part of the crisis to managerial failures, particularly in companies operating in the automotive manufacturing sector. These warnings come as the metals and electrical industries prepare for a new round of wage negotiations, with the union demanding a 5% wage increase, while employers have proposed an increase of 1.8% by the end of 2028.
For his part, Zander considered the wage increase demands irresponsible given the difficult conditions facing companies, warning that many are struggling to survive and there are no clear signs of improvement on the horizon, which could put more jobs at risk. Germany is one of the most prominent industrial powers in the world, and the automotive, metals, engineering, and electrical industries form two fundamental pillars of its economy, providing millions of jobs.
Source: Syrian Arab News Agency (SANA)
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