Job market shrinks as AI and economic pressures slash vacancies by 30% in key sectors
The job market is shrinking across multiple sectors as economic pressures and AI advancements reshape employment. New data shows sharp declines in vacancies for executives, office staff, and even academic professionals. Yet, some skilled trades remain more resilient amid the downturn. In 2025, industrial firms cut executive job listings by 30%. Academic professional roles also fell by 22%, according to Enzo Weber of the Institute for Employment Research (IAB). Skilled worker openings dropped by 8%, while construction, trades, and environmental sectors saw a 14% decline in postings.
Office and administrative positions were hit hard, with secretarial and office management roles down by 22%. Human resources vacancies also fell by 19%. Weber noted that routine-heavy jobs face the greatest pressure from both economic conditions and the rise of generative AI. Despite the downturn, trade representatives see potential in AI-driven changes. Demand is growing for craftsmanship, hands-on experience, and responsibility in skilled trades. Friedrich Hubert Esser, president of the Federal Institute for Vocational Education and Training (BIBB), emphasised that hands-on professions remain stable even as AI transforms the sector.
The overall job market stays tight, with few new positions being created. While AI and economic challenges reduce opportunities in some areas, skilled trades continue to offer relative stability. The shift highlights a growing need for specialised, non-routine skills in the workforce.
