Researchers expect 200,000 new jobs in the defense industry

Nuremberg. Labor market researcher Enzo Weber expects a sustained upswing in the German defense industry. The industry's upward trend will be sustainable and likely continue for many years, the expert from the Institute for Employment Research (IAB) in Nuremberg told the German Press Agency.

Due to the exemption from the debt brake for defense spending, financing options are secured, said the IAB's head of research for forecasts and macroeconomic analyses. According to a study with IAB participation, up to 200,000 jobs could be created if Germany were to increase its defense spending from 2 to 3 percent of gross domestic product, financed with debt.

"Now it depends on whether money is simply spent or whether industrial renewal is also achieved," said Weber, referring to the federal government's funding options. The state must also use the funds to create competition and innovation and initiate a turnaround in industry.

In contrast to the rest of the German industry, Weber sees the defense industry on the up for about two years, with significantly rising employment figures. The number of job postings is also rising, while the number in the rest of the industry is declining significantly.

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At the defense company Rheinmetall, for example, the number of applicants has risen steadily in recent years, a spokesperson stated upon inquiry. While there were around 59,000 applications from Germany in 2021, this number had already risen to 175,000 by 2024. In the first half of this year alone, 120,000 applications were received from Germany.

The manufacturer of tanks and air defense systems has hired around 500 new employees per month since the beginning of the year. Most of the new positions, almost 2,000, were created in production-related areas and in the IT sector. Currently, the company is primarily seeking employees in product development and production, such as engineers or mechatronics technicians.

The Augsburg-based defense supplier Renk also plans to further increase its workforce in the coming years. However, because they have significantly improved production efficiency, they will not require as many employees as originally planned for 2023, a spokesperson said.

The Diehl conglomerate is also seeing rising numbers of applicants for its defense division. A spokeswoman stated that several hundred people have been continuously hired in the Defense division in recent years, with more than 1,000 being hired in 2024. Hiring is expected to continue at this rate, and the trend is expected to continue in 2026.

The company says it perceives a change in the defense industry's image among applicants and large segments of society. Diehl produces, among other products, the Iris-T air defense system, which is also deployed in Ukraine.

Labor market expert Weber sees potential for the defense industry, for example, in the struggling automotive and supplier industries. Their skilled workers are attractive to defense companies. "Through consulting, placement, and targeted training, they can gain a foothold in a new industry."

However, the arms industry is too small to halt the downward trend in Germany on its own. Currently, around 17,000 people are employed in the arms industry in the narrower sense in Germany. "This refers to companies that manufacture weapons and ammunition or combat vehicles, not mere suppliers of tires, for example, or companies that produce communications systems that can be used both civilian and military."

RND/dpa