Recruit Sales in Germany Bulletin Update February 2026

GERMAN ECONOMIC INDICATORS February 2026

The German economy is showing signs of a fragile, low-level recovery in February, with GDP projected to grow by roughly 1.0% to 1.5% in 2026, driven by government infrastructure spending, higher defence spending, improved company depreciation rules, and rising real incomes, but not really from organic growth, which continues to remain weak.

German industry, especially the automotive, beverage, and electrical equipment sectors, are starting to show signs of stabilisation, but the automotive sector remains under pressure from international competition, particularly from China.

Consumer confidence has improved, with the GfK index rising to -24.1 for February, although sentiment remains low. Income expectations have rebounded sharply, and the willingness to buy has generally improved, although continuing high saving rates suggest continued caution.

Lower energy costs are expected to support the economy at the start of 2026.

Inflation is expected to ease to around 2.0%-2.2% in 2026.

The consensus is that 2026 will be a year of transition from stagnation to a slow recovery.

German Exports February 2026

While exports are expected to grow by 0.8% after three years of decline, they face pressure from US tariff policies, which may reduce 2026 growth by up to 0.6 percentage points.

German foreign direct investment in the United States has fallen by about 45 per cent since the change of presidency.

The trend suggests that German companies are currently holding back investment in the United States. Those who commit large sums require reliability and certainty in planning. At this moment, it seems, neither is sufficiently present in the United States for German companies to commit.

In metal production and processing, however, the pessimism that has persisted for many years is noticeably receding.

Employment February 2026

Employment is projected to stabilise in 2026, at around 3.5%.

Despite potential layoffs in manufacturing (mainly automotive and car component OEMs), there is strong demand for skilled professionals across sectors, particularly due to an ageing workforce. Roles in high demand include vocational trainees (Azubis), technicians (electricians, mechanics), healthcare workers, and specialised engineers.

The German Armed Forces, especially the Army, have seen a big influx of recruits this year.

Some Facts About Germany (context for recruiters and hiring managers)

Population & workforce: Germany is Europe’s largest economy and has a working-age population that supports a broad, highly skilled labour market. Recent figures show 45.8 million persons in employment (Aug 2025, Destatis).

Trade orientation: Germany remains highly export-oriented; shifts in global trade policy and demand (notably the U.S. market) materially affect industrial hiring and sales pipelines.

Policy & investment: The federal government and EU policy moves in 2025 (infrastructure, industrial decarbonisation support, and targeted investment programs) are intended to stabilise domestic demand and create selective growth pockets.

These initiatives are likely to create opportunities across industrial, project, and solutions sales in sustainability- and energy-intensive sectors.

Summary

If you are looking to recruit experienced sales staff to help you exploit new or existing markets in Germany, the UK, Europe, or further afield, please call us for a no-obligation discussion.

NB: Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to monitor news reports and provide monthly summaries of the trends.