A new study forecasts a major jobs surge in Germany’s defence sector as NATO states lift military spending, even as traditional industries like cars and steel continue to shrink.
- Analysts from EY-Pantheon and Dekabank say Germany could add around 144,000 new jobs by 2029 if allies reach the planned 3.5% defence-spending target.
- Including positions secured through incoming weapons contracts, the total impact is estimated at 360,000 jobs, largely benefiting firms such as Rheinmetall, KNDS and Heckler & Koch.
- Defence investments are expected to push Germany’s 2029 economic output 0.7% higher, with nearly €2.2 trillion in spending projected across European NATO states by 2035.
- Experts warn, however, that the gains will not fully offset steep job losses in Germany’s car and steel sectors, urging reforms to reduce labour costs, regulation and energy prices.
The report argues Europe’s defence industry will see “massive growth” as most investment stays within the continent, though policymakers face pressure to stabilise other struggling industrial sectors.