German industry experiences its strongest order growth in two years in December 2025, driven by electrical and machinery sectors, despite declines in automotive and vehicle orders.
Economic uncertainty and shifting job requirements in early 2026 are causing German companies to hesitate in hiring, with manufacturing seeing job declines and significant layoffs.
A survey of German manufacturing companies shows most do not expect AI to cause significant job losses, focusing instead on process changes and workforce training.
Tens of thousands of jobs are predicted to be cut in Germany's metal and electrical industry due to high costs and workforce challenges, with industry leaders calling for government action to reduce EU bureaucracy and improve employee retention.