Following mass layoffs: income losses among manufacturing workers are high when they switch both to the services sector and to a service occupation

Infographic of August 14, 2026

The infographic of DIW Weekly Report 32/2026 addresses the income losses experienced by industrial workers after mass layoffs and their relationship to a transition into the service sector or a service occupation. Its title is: “After Mass Layoffs: Income Losses of Industrial Workers Are High When They Switch Not Only to the Service Sector but Also to a Service Occupation.” On the left-hand side, there is a white-background section headed: “Two-thirds of the Industrial Jobs Lost Between 1975 and 2019 Were Offset.” This section illustrates the development of production-related occupations in two economic sectors. Beneath a factory icon representing the industrial sector, red wrench symbols indicate a decline of 1.53 million jobs. Next to it, a building icon representing the service sector is accompanied by green wrench symbols, illustrating an increase of 1.03 million production-related jobs. In the center of the infographic are an icon showing two coins and a group of people. Below them, a legend explains the color coding of occupational groups: yellow represents production-related occupations, while blue represents service occupations. On the right-hand side, a chart displays the average annual wage income losses, measured as percentages, following a job change. Four transition scenarios are compared, involving moves between the industrial and service sectors as well as between production-related and service occupations. The smallest income losses occur when workers move within the industrial sector into a production-related occupation (−0.9%). When workers remain in the industrial sector but switch to a service occupation, the losses amount to −2.3%. Within the service sector, losses are −0.5% when workers move into a production-related occupation, but rise to −17.0% when they also switch to a service occupation. The four columns are composed of yellow and blue stripes and are complemented by factory and building icons as well as wrench and speech-bubble symbols. At the bottom of the infographic appear the sources “Establishment History Panel; Sample of Integrated Employment Biographies”, a note indicating that the figures are adjusted for firm-level wage premiums, the license notice “CC BY 4.0”, the branding “DIW Weekly Report 32/2026”, and the DIW Berlin logo.

Topics: Industry , Labor and employment

Related articles

keyboard_arrow_up