Employment in the Context of Structural Change: Same Occupations, Different Sectors

Abstract

The loss of manufacturing jobs in Germany is often viewed with great concern. While many manufacturing jobs are being lost in the manufacturing sector, new jobs with similar profiles are appearing in service firms. These new jobs offset about two-thirds of those lost in manufacturing industries between 1975 and 2019. If laid-off workers can switch to a new job involving similar tasks, their loss of income is usually minimal— regardless of the sector in which they work. The key is maintaining occupation-specific skills. Therefore, rather than protecting individual industries, the focus should be on skills development, continued employability, and facilitating moves across sectors.