Anyoung: German industrial sales are picking up, but cannot prevent job losses. The automotive industry is hit first.

A research report released by consulting firm Ernst & Young on Monday shows that although sales of German industrial companies have increased for the first time in about three years, job cuts in the industry are still ongoing, with the automotive industry being hit hardest by the impact. Ernst & Young stated that by the end of the first quarter, employment in German industrial companies had decreased by 127,300, a year-on-year decline of 2.3%. Since 2019, the industry has cut 341,500 jobs, a decrease of slightly over 6%, meaning that one out of every 17 industrial jobs has disappeared. Ernst & Young stated that weak sales are the main reason for the latest round of job cuts, but data from the first quarter indicates that there may be a turning point. After ten consecutive quarters of decline, industrial sales increased by 1.7% year-on-year. Ernst & Young expert Jan Brorhilker said that this improvement is mainly due to the metal industry, while most other industries are still under pressure. "After three years of continuous decline, this situation is eroding the foundation of companies," Brorhilker said.