German industrial businesses employed some 496,000 fewer people at the end of 2025 compared to the start of 2019, according to a survey conducted by the Ifo Institute economic think tank.
The figure represents a 7.1% decline.
Worst-hit has been the automotive industry, a key sector of the German economy, where 123,500 jobs were cut both at carmakers and suppliers, a decline of 13%.
But the metals sector also saw a marked decline in the number of jobs available, dropping 115,600 workers in the period, while the machinery sector bled 64,500 positions.
At the same time, more than 2.2 million additional jobs were created in the service sector, according to Ifo.
It said 391,000 new jobs had been established in the health sector and another 357,000 in social services, including care homes.
Joachim Ragnitz, managing director at Ifo Dresden, said the figures showed an “accelerated structural shift” in Germany.
“Ironically, the very sectors that have sustained our prosperity up to now are shrinking,” he said.
“The new jobs are for the most part not being created where Germany is especially productive and innovative. That may slow down our growth potential in the future.”