World

Germany's labor market in crisis: defense industry hiring managers

Herz — World Desk · 22 July 2026 at 13:23 · 30s summary · 2 min read

The essentials

Germany's labor market is in crisis: just under three million unemployed are registered, with 15,000 industrial jobs disappearing monthly. Executive unemployment has jumped 14% in a year. Yet the defense industry is an exception: Rheinmetall, Hensoldt, KNDS, and ThyssenKrupp Marine Systems are recruiting managers and engineers, with thousands of positions planned for 2026. The trend is expected to continue through 2035, according to recruitment specialists.

Just under 3 million unemployed in Germany, 15,000 industrial jobs lost monthly
Executive unemployment up 14% year-over-year across all sectors
Rheinmetall planning over 5,000 global recruitments in 2026
Hensoldt planning 1,600 positions in 2026, approximately 60 in management
Career transitions from automotive and aerospace valued in defense sector

Illustration image — Davidsvine, CC BY 4.0, Wikimedia Commons

What we know

Germany's labor market is in crisis, according to Handelsblatt. The number of unemployed is just under three million, and the Institute for Employment Research (IAB) estimates that approximately 15,000 industrial jobs disappear every month.

Executives are particularly affected. Germany's Federal Employment Agency (Bundesagentur für Arbeit), headquartered in Nuremberg, reports a 14% increase in unemployed managers year-over-year across all sectors.

The defense industry exception

Yet defense contractors are an exception: they continue recruiting managers against the broader trend.

Rheinmetall, a DAX-listed company, plans over 5,000 global recruitments in 2026. The company does not separately disclose management positions.

Hensoldt AG, specializing in military electronics and defense systems, plans 1,600 new positions in 2026, including approximately 60 management roles.

KNDS, a Franco-German defense group specializing in armored vehicles, recruited nearly 100 managers last year and plans to hire slightly over 100 additional managers in coming years.

ThyssenKrupp Marine Systems (TKMS), a German shipbuilder and ThyssenKrupp division headquartered in Hamburg, focuses recruiting on candidates with maritime expertise, technical training, engineering backgrounds, or IT skills.

Planned 2026 recruitments in German defense (Rheinmetall: global scope)

Rheinmetall5000

Hensoldt1600

Source ↗

Profiles in demand

The most sought-after profiles for management roles at Rheinmetall are IT, project management, engineering, and procurement. Hensoldt also values career transitions from automotive or aerospace sectors.

Defense manufacturers are undergoing structural transformation: shifting from artisanal to mass production. This transition creates strong demand for managers experienced in transformation, combining technical and commercial expertise.