German business trends show crafts growth amid industrial job losses

The German crafts sector has seen its first slight increase in the number of businesses in some time. As of late June, there were 145,266 registered businesses, representing a 0.7 percent growth since the beginning of the year. This growth is primarily driven by trades that do not require a master's certificate, such as building cleaners, cosmeticians, floor layers, and photographers, which saw a 3.5 percent increase.

In contrast, trades requiring official certification saw a 0.7 percent decline. However, some specific sectors within this group, including electrical technicians, hairdressers, and automotive technicians, reported growth.

Meanwhile, the metal and electrical industry in Hesse continues to face significant employment challenges. Data from May 2026 shows that 187,000 people are employed in the sector, following a loss of 600 jobs compared to April. This represents a 3.3 percent decrease compared to the previous year. Since the industry's peak in September 2018, over 33,000 jobs have been lost, a total decline of 15 percent. Industry representatives have called for government reforms to reduce location costs and bureaucracy to stabilize the sector.