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2025 Performance of Germany’s Chemical Industry
The German chemical industry experienced a continuing downturn throughout 2025, as revealed by the latest annual report from the German Chemical Industry Association (VCI). The sector faced declines in production, prices, and exports, with overall output and producer prices each falling by approximately 0.5 percent compared to the previous year. This challenging environment sustained a long-term downward trend that has significantly affected businesses, particularly small and medium-sized enterprises (SMEs) within the industry [Source 1][Source 3][Source 6].
Economic and Employment Impact in the Sector
The difficult economic conditions led to substantial consequences, including over 120,000 jobs lost in the broader German industrial sector in 2025. Contributing factors include increased costs and stagnant revenues, with industry revenues dropping by 1.1 percent over the year. This has further exacerbated uncertainty and downturns in industrial production and investor confidence. The chemical and pharmaceutical industries operate below historically low profitability thresholds, with wage-related production costs rising by more than 10 percent annually since 2021, placing additional strains on competitiveness [Source 7][Source 8].
Outlook and Implications for Expats and Foreign Workers
For expatriates, international students, and foreign workers engaged in Germany’s chemical and pharmaceutical sectors, these developments mean heightened job insecurity and potential salary pressures. The lack of significant recovery expected into 2026, highlighted by major firms such as Covestro, underscores a challenging job market with limited growth prospects this year. A potential pause in wage increases during collective bargaining (Tarifrunde #Chemie26) aims to stabilize the industry’s competitiveness, which may impact upcoming salary negotiations and employment terms [Source 5][Source 8].
Additionally, for international professionals, practical considerations include careful monitoring of employment contracts, possible changes in job roles or working hours, and the need to engage with labor unions or legal advisors regarding rights amid company restructurings. Foreign students and skilled workers should be mindful of the wider economic context affecting internship and job placement opportunities within the German chemical sector.
Further information and official perspectives are available from the German Chemical Industry Association’s communications and the detailed coverage on the status of the sector’s business climate for 2025 [Source 1].
