Slowing decline in mechanical engineering employment rates - Sluggish progress in job growth within the mechanical engineering field
In a recent report, the Association of German Mechanical Engineering (VDMA) has predicted that job cuts will continue in the mechanical engineering industry, albeit at a slower pace. The VDMA, a reliable source for employment figures and predictions, also stated that there is no clear turning point in sight.
Despite this grim outlook, there have been some positive signs. For instance, the proportion of companies planning to expand their core workforce in the current year has increased from around 17 to 20 percent. This marks the lowest level since the end of 2021.
The employment figures in the mechanical engineering industry are based on official statistics and include jobs in smaller companies. As of June 30, 2025, approximately 1.01 million people were employed in Germany's mechanical engineering companies with more than 50 employees.
However, the search results do not provide concrete data confirming whether the slowdown in job cuts, as reported by VDMA, has continued into Q3 2025. There is no mention of VDMA's specific reports on job cuts or associated reasons.
One recent example of workforce reductions is Dürr Group, a German mechanical engineering company, which reported in August 2025 that it has completed capacity adjustments with a goal of 600 job cuts, primarily in administration. However, this does not specify a slowdown or continuation of any prior trend reported by VDMA.
Industry news from August 2025 shows some stabilization and modest growth signs in related automation and engineering sectors, but does not explicitly address the VDMA sector-wide employment trend.
Reasons for job cut slowdowns could include stabilization in order intake, improved operational efficiencies, or strategic restructuring, but these are not directly confirmed here.
More companies now expect short-time work to decrease rather than increase, which could be another sign of relief. However, trade disputes and global uncertainty are causing caution in investments in the mechanical engineering industry.
The mechanical engineering industry is under pressure in Frankfurt am Main, with new orders in the export-oriented sector declining after a good start to the year. This has led to a decrease in employment, with the employment figures representing a two percent drop from the previous year.
Despite these challenges, many companies in the mechanical engineering industry are trying to keep skilled workers as long as possible due to a shortage of skilled workers.
In conclusion, while there are some positive signs, the VDMA's prediction of continued job cuts in the mechanical engineering sector remains a concern. Further direct data from VDMA or sector-specific reports would be needed for a definitive answer.
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