The European industrial sector is grappling with a deep recession, resulting in mass job cuts and capital flight outside the Old Continent. In Germany alone, over 120,000 industrial jobs were eliminated in 2025, which is having a ripple effect on the Polish labor market. In Poland, the unemployment rate rose to 6 percent in January, and the number of new job offers fell to the lowest level in two years.

Production Collapse in Germany

The German industry lost 124,000 jobs in a year, representing a decline of 2.3%. The automotive sector was hit the hardest.

Rising Unemployment in Poland

The registered unemployment rate rose to 6.0%. Employment offices saw an increase of 47,000 new people seeking employment.

Employment Offer Crisis

The number of new job advertisements fell by 8% year-on-year. The job offer barometer recorded the strongest decline in two years.

Deindustrialization Threat

The pace of factory closures in Europe increased sixfold. The chemical industry warns about the lack of implementation of the Antwerp Declaration.

The situation in European industry is becoming alarming, and the pace of manufacturing plant closures on the Old Continent has increased sixfold in recent years. According to data presented by the Polish Chamber of Chemical Industry, since the signing of the Antwerp Declaration in February 2024, the European Commission has failed to implement over 80 percent of the postulates aimed at protecting the sector's competitiveness. Energy-intensive companies are fleeing Europe, seeking lower operational costs in other regions of the world, leading to progressive deindustrialization. Since the energy crisis triggered by Russia's invasion of Ukraine in 2022, production costs in Europe have risen drastically, undermining the foundations of an economic model based on cheap raw materials.The most difficult situation is in Germany, where, according to a report by EY, industrial employment has fallen to 5.38 million people. The largest cuts affected the automotive sector, which lost about 50,000 jobs. Poland, being a key subcontractor for German factories, is feeling these problems strongly. The Central Statistical Office and the Ministry of Labor recorded an increase in the number of registered unemployed by 47,000 people in one month. „Europe is not only losing existing production but also not building sufficient capacity for the future.” — Tomasz Zieliński Leading indicators, such as the Job Offer Barometer, point to further cooling of sentiment. The number of online job advertisements fell for the fourth consecutive month, which is the worst result since the beginning of 2024. Although experts point to minor signs of stabilization in surveys by the ZEW Institute, the overall picture remains pessimistic. The Polish energy-intensive industry warns that without government support systems and equalization of energy price differences relative to Germany, domestic companies may become permanently uncompetitive.

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