Lead briefing
The boundaries of employment in German manufacturing are disappearing: the industrial logic beyond statistics.
When statistical authorities still use "industry classification" to define manufacturing, real production activities have already crossed industry boundaries. According to German labor market data, CEPR finds that a considerable share of manufacturing jobs are actually performed by service-sector firms—engineers designing production lines at software companies, and technical personnel commissioning equipment at engineering service providers. The rise of this "hidden manufacturing" not only means that traditional employment statistics underestimate the true scale of German industry, but also suggests that the core competitiveness of German manufacturing is shifting from factory floors toward R&D, digitalization, and systems integration.
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