Stable increase in manufacturing employment 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 continued increase in manufacturing employment in July 2023. According to preliminary results, 5.6 million people were employed in establishments with 50 or more employees in this sector toward the end of July. Compared to the same month last year, July 2022, manufacturing saw an increase of 1.2 percent, or 66,400 workers. In the previous month of June 2023, the number of employees increased by a moderate 0.1 percent, or 2,800.

Industry comparison: where were the biggest changes?

There was considerable variation in employment trends within manufacturing in July 2023. The manufacture of computer, electronic, and optical products saw an above-average increase of 5.6 percent. Also above average were increases in the manufacture of electrical equipment (+2.2 percent) and mechanical engineering (+1.5 percent). By contrast, the food industry and the automotive industry each recorded increases of only 1.0 percent, while the manufacture of fabricated metal products and metal production and processing each grew by 0.6 percent. A downward trend was seen in the rubber and plastics industry, with a decrease of 1.0 percent, and in the chemical industry, with a decrease of 1.2 percent.

Hours worked and compensation show nominal increases

Hours worked in the manufacturing sector in July 2023 increased by 2.0 percent compared with the same month a year earlier, with the number of working days remaining unchanged. Compensation for workers in the August 2022 to July 2023 period posted a nominal increase of 5.3 percent over the previous 12 months.

Current figures indicate stable growth in manufacturing employment, with some industries growing faster than others. This could be due to different economic factors and market trends in each sector. Trends in hours worked and wages also signal positive economic momentum in the sector.

For founders and startups in related sectors, this data could provide important insights to plan business strategies and expansions, as it points to 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.