German Craft Industry Loses 73,000 Jobs; President Demands Commission on Payroll Costs
Published on 07/21/2026 at 07:51 | Redaktion boerse-global.de
A nationwide slump in demand and rising geopolitical uncertainty are hammering Germany’s skilled trades, with 73,000 jobs vanishing in 2025 alone. According to a Deloitte study released in spring 2026, 72 percent of companies are now prioritising cost reduction. The survey of 120 chief financial officers found that around 45 percent rated their business outlook worse than in the previous quarter, pointing to weak domestic demand and geopolitical risks as the top challenges.
Against that backdrop, Jörg Dittrich, president of the German Confederation of Skilled Trades (ZDH), stepped up his call for a dedicated commission to slash non-wage labour costs. “The government’s current reform efforts are not having the hoped-for effect in the workshops,” he said on Tuesday. A commission focused on reducing ancillary wage expenses, he argued, is urgently needed to prevent further deterioration. Price-adjusted turnover in the sector has also turned negative, and insolvency figures have been rising.
There is, however, a bright spot in training. The number of new apprenticeship contracts rose for the fourth consecutive half-year period. Between January and June 2026, craft businesses signed almost 67,800 contracts—a 4.9 percent increase compared to the same period a year earlier. Regions such as Hamburg have been particularly successful in attracting young recruits. Dittrich attributed the improvement to better earnings prospects and a targeted image campaign. Yet more than 20,460 apprenticeship positions remain unfilled nationwide. He warned that a programme designed to match candidates precisely with vacancies is due to expire at the end of 2027 and demanded additional financial support for training centres.
Political developments elsewhere may also affect the sector’s environment. Four Green state finance ministers presented a set of proposals on Monday to reform Germany’s debt brake. They suggested raising the structural deficit limit from 0.7 percent to 1.0 percent of gross domestic product, but not before 2036. Meanwhile, the federal cabinet has approved measures to cut red tape: electric vehicles will be exempt from the requirement to display emissions stickers, and further simplifications are planned for shipping.
Additional criticism came from the financial industry. The Association of German Pfandbrief Banks (vdp) complained that the European Commission had failed to produce concrete proposals to strengthen the competitiveness of European lenders. By 2032, German banks could face an increase in capital requirements of up to 20 percent. The vdp is pressing for a permanent cap on technical capital thresholds.
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