German Industrial Sales Rebound Amid Ongoing Job Losses, Auto Sector Hit Hardest

German industrial companies saw their sales rise by 1.7% year-on-year in the first quarter of 2024—the first increase in nearly three years—following ten consecutive quarters of decline. However, employment continued to shrink: as of the end of Q1, industrial sector employment had fallen by 127,300 jobs, or 2.3%, compared to the same period a year earlier. Since 2019, the industry has cut a total of 341,500 jobs, representing a cumulative decline of over 6%—equivalent to one out of every 17 industrial jobs disappearing. The automotive sector has been hit the hardest. According to consulting firm EY, although initial signs of sales recovery are emerging, prolonged weak sales in prior periods remain the primary driver behind the job cuts. The recent sales growth was largely driven by the metals industry, while most other industrial sectors continue to face significant pressure.