Long-Running Topic? Expert Certifies a Sustainable Rise in the Defence Industry

Labor market researcher Enzo Weber anticipates a long-lasting rise in the German defensce industry, as dpa has learned.

The current upward trend in the German defence industry will be sustainable and—as can already be foreseen—will continue for many years, believes Enz Weber from the Institute for

Labour market and occupational research (IAB) from Nuremberg (Germany). Due to the exception to the debt brake for defence spending, financing options are ensured, explains the IAB head of research for forecasts and macroeconomic analyses. According to a study involving the IAB, up to 200,000 jobs could be created if Germany increases its defence spending (debt-financed) from two to three percent of gross domestic product. 

Now, it depends on whether money is merely spent or whether industrial renewal can also be achieved. The government must use its resources to create competition and innovation, as well as initiate a turnaround in the industry. Unlike the rest of Germany's industry, Weber sees tailwinds for the defence sector over the past two years, accompanied by significantly rising employment figures. He also notes an increase in job advertisements, while the opposite trend is observed in other industries. The labor market expert Weber sees a lot of potential for the defence industry, particularly among employees of the struggling automotive and supplier industry. Their skilled workers are particularly attractive to defence companies.

German defence companies record a surge in applications

At the defence company Rheinmetall, for instance, the number of applicants has steadily increased in recent years. In 2021, there were around 59,000 applications from Germany, but in 2024, the figure had already risen to 175,000. In the first half of this year alone, 120,000 applications from Germany were received. The manufacturer of tanks and air defence systems, as reported, has been hiring approximately 500 new employees per month since the beginning of the year. Most of the new positions, nearly 2,000, are in production-related areas and the IT sector. Currently, the company is primarily looking for employees in product development and production—such as engineers or mechatronics technicians. Additionally, the Augsburg (Germany)-based defence supplier Renk plans to further increase its workforce in the coming years. 

However, as Renk has significantly improved production efficiency, fewer employees are needed compared to 2023. The conglomerate Diehl is also experiencing an increase in applicants for its defence division. In recent years, several hundred people have been continuously hired in the group's Defence segment, reaching over 1,000 in 2024. Hiring is expected to continue at this level, with the trend projected to persist into 2026. Renk attributes this to an ongoing shift in the public perception of the defence industry among applicants and in large parts of society. Diehl, among other products, manufactures the Iris-T air defence system, which is also being deployed in Ukraine.