Stable increase in employment in the manufacturing sector in July 2023

Employment in the manufacturing sector continues to grow. Some key sectors in particular are showing strong growth. Read more in our report.

WIESBADEN - The Federal Statistical Office (Destatis) has published new data indicating a continuous increase in employment in the manufacturing sector in July 2023. According to preliminary results, 5.6 million people were employed in companies with 50 or more employees in this sector towards the end of July. Compared to July 2022, the manufacturing sector recorded an increase of 1.2% or 66,400 employees. In the previous month of June 2023, the number of employees rose by a moderate 0.1% or 2,800.

Sector comparison: where were the biggest changes?

In July 2023, there were considerable differences in employment trends within the manufacturing sector. The manufacture of data processing equipment, electronic and optical products recorded an above-average increase of 5.6%. Growth was also above average in the manufacture of electrical equipment (+2.2%) and mechanical engineering (+1.5%). In contrast, the food industry and the automotive industry each only recorded an increase of 1.0%, while the manufacture of metal products and metal production and processing each grew by 0.6%. A downward trend was recorded in the rubber and plastics industry with a decline of 1.0% and in the chemical industry with a decline of 1.2%.

Hours worked and wages show nominal increases

Hours worked in the manufacturing industry in July 2023 increased by 2.0% compared to the same month of the previous year, although the number of working days remained unchanged. Compensation for employees in the period from August 2022 to July 2023 recorded a nominal increase of 5.3% compared to the previous twelve months.

The current figures indicate a stable increase in employment in the manufacturing sector, with some sectors growing faster than others. This could be due to different economic factors and market trends in the individual sectors. The development of working hours and wages also signals positive economic momentum in the sector.

For founders and start-ups in related sectors, this data could provide important insights to plan business strategies and expansions as it indicates long-term trends in the manufacturing sector. It remains to be seen how these developments will continue in the coming months and what impact they will have on the labor market and the economy as a whole.