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Metal and Electrical Industry Warning of Major Job Cuts
The German employers’ association Gesamtmetall forecasts that the metal and electrical industry could lose up to 150,000 jobs within 2026. This stark warning highlights ongoing difficulties caused primarily by high energy costs, taxes, and social security contributions that are creating challenging conditions for employers in the sector. The trend of job losses is part of a broader decline, with over 270,000 positions already lost since 2018, representing a contraction of approximately 6.7% from the peak employment levels recorded in 2019 [Source 1][Source 4].
Factors Driving Job Losses in the Metal and Electrical Industry
According to Gesamtmetall, the deterioration in the industry’s situation is compounded by a lack of investment leading to aging production facilities and failing to create new jobs. The sector’s production remains 13% below pre-crisis levels in the fourth quarter of 2025, indicating that output has shrunk nearly twice as much as employment decline. Employers highlight that the existing regulatory framework, including stringent labor laws and supply chain due diligence rules, are restrictive and call for more flexibility, such as adjustments to working time laws. These changes are seen as urgent to stem the job losses and stabilize the industrial base [Source 6].
Implications for Expats and Foreign Workers in Germany
Expats, international students, and foreign workers employed in Germany’s metal and electrical sectors may face heightened job insecurity in 2026 amid this anticipated wave of layoffs. Those working in these industries should be alert to potential disruptions, including possible job cuts and changes in working conditions. The intensified cost pressures on companies may also affect wage negotiations and employment benefits. It is advisable for affected workers to stay informed about their legal rights, explore upskilling opportunities, and maintain awareness of labor policy developments that could alter workplace regulations.
Moreover, expat employees should monitor official announcements from Gesamtmetall and related industry bodies to prepare for adjustments in contracts or potential assistance programs. Given that flexibility in labor laws is being advocated by employers, changes in working hours or contract terms might be introduced, impacting foreign workers’ schedules and entitlements [Source 6].
Outlook and Next Steps for the Industry
Overall, Gesamtmetall’s forecast underscores a critical phase for the metal and electrical industry as it navigates economic and regulatory challenges. The association stresses the need for accelerated reforms and easing of burdens to reverse employment declines. Industry leaders urge policymakers to implement promised labor market flexibilizations outlined in the coalition agreement and to reconsider Germany’s unique stance on supply chain laws that currently impose additional constraints on manufacturers.
For further details, readers can review the original reporting by Tagesschau, which remains the primary source on the issue: Tagesschau – Metall- und Elektroindustrie: Arbeitgeber befürchten Verlust von bis zu 150.000 Jobs [Source 1].
