North Rhine-Westphalia, Germany’s industrial heartland, faces a looming crisis of deindustrialization as companies warn of accelerating job losses and declining production levels. The North Rhine-Westphalia Association of Chambers of Industry and Commerce (Unternehmer NRW) has issued a stark warning, highlighting a monthly loss of approximately 2,100 industrial jobs within the state’s metal and electrical industries alone.
Johannes Pöttering, CEO of Unternehmer NRW, stated in an interview with the “Rheinische Post” that the loss of these positions, many of which are high-paying, with an average annual salary nearing €65,000, has significant ramifications for state revenues through reduced taxation and social contributions. He characterized the situation across much of the industrial sector as “extremely concerning.
Data released by the association paints a grim picture: Utilization rates within the chemical industry have plummeted to just 70%, while metal and electrical production has dropped by a substantial 23% compared to pre-pandemic levels in 2019. The potential for an acceleration of job cuts, driven by existing workforce surpluses, is a significant and growing worry.
The association is demanding a comprehensive and immediate policy overhaul from both federal and state governments. Pöttering identified several key areas requiring urgent attention-namely, the high cost of energy, comparatively uncompetitive tax and labor costs in the international market, restrictive working hours, burdensome bureaucracy and protracted planning and approval processes. These factors, he argues, are crippling German industry and undermining its global competitiveness.
Critics are questioning whether current government efforts are sufficient to address these deep-seated structural challenges and are calling for bolder action to protect North Rhine-Westphalia’s vital industrial base. The current trajectory, if unchecked, raises serious concerns about the long-term economic stability and future prosperity of the region and potentially the nation as a whole.