German Industrial Union Warns of Thousands of Job Losses Amid Deepening Economic Crisis

Union Leader Sounds Alarm on Industrial Future

Michael Vassiliadis, chairman of the Industriegewerkschaft Bergbau, Chemie, Energie (IG BCE), has issued a grave warning regarding the future of German industry, predicting thousands of job losses due to persistent economic challenges. Vassiliadis stated that the industry is currently in a 'very serious situation' and faces an 'existential site crisis'.

The union leader's remarks underscore growing concerns about Germany's industrial competitiveness, with calls for urgent political action to avert further decline.

Mounting Job Losses and Plant Closures

According to Vassiliadis, the German industrial sector is already experiencing significant setbacks. He reported that 28,000 jobs have already been eliminated, with an additional 40,000 jobs currently 'on the brink'. Furthermore, approximately 12,000 employees are on short-time work, and 200 plants have been permanently closed.

These figures are corroborated by broader analyses, with a recent report indicating that over 100,000 jobs were lost in the German industrial sector within a year, as of the first quarter of 2025. The automotive industry has been particularly hard hit, accounting for around 45,400 of these job eliminations. Forecasts suggest that at least 70,000 additional jobs could be lost in the industrial sector by the end of the year.

Key Economic Headwinds Facing German Industry

Vassiliadis and other industry observers point to a confluence of factors contributing to the current crisis:

• High Energy Costs: German industry, particularly energy-intensive sectors like chemicals and steel, continues to grapple with electricity prices significantly higher than international standards. This has led to production cuts, with output in some energy-intensive companies reportedly one-fifth lower than before the Ukraine war.
• Geopolitical Tensions and Protectionism: Unreliable US trade policy and increasing global protectionist tendencies are impacting Germany's export-driven economy.
• Structural Weaknesses: Long-standing issues such as a strong dependence on the automotive industry, weak export demand, demographic shifts, and a shortage of skilled workers are exacerbating the situation.
• Carbon Pricing: Vassiliadis has criticized the European Union's Emissions Trading System (ETS), highlighting that the cost of a tonne of CO2 in Europe is substantially higher than in countries like China or Japan, placing German companies at a competitive disadvantage.

The German economy has experienced a period of stagnation and decline, with a 0.1% contraction in GDP in 2023 and a further 0.2% decline in 2024. Only modest growth is anticipated for 2025, signaling a persistent structural crisis rather than a cyclical downturn.

Urgent Calls for Political Intervention

In light of the severe outlook, the IG BCE and other unions are intensifying pressure on the German government for decisive action. Vassiliadis emphasized that current measures, such as reductions in electricity tax and the abolition of the gas storage levy, are insufficient to address the dramatic situation. He reiterated the demand for a state-subsidized industrial electricity price to safeguard Germany's industrial base and prevent further deindustrialization.