Employment in Germany’s engineering industry is expanding at its fastest rate in 40 years, highlighting the strength of Europe’s largest economy as global financial storms intensify.

Jobs in the sector – the backbone of Germany’s manufacturing industry – rose by 27,000 in January, the highest monthly increase since the 1960s, according to figures published on Tuesday by Gesamtmetall, the engineering employers’ federation. Some companies reported losing production because they could not fill vacancies quickly enough.