Amid Germany’s weak economic conditions, companies are increasingly cautious about workforce planning, according to a recent Ifo survey. The research institute reported on Wednesday in Munich that its employment barometer fell to 92.5 points in November, down from 93.5 in October. “Many companies continue to cut jobs,” said Klaus Wohlrabe, head of Ifo surveys. He added that the labor market’s development remains “weak.”
In the industrial sector, the trend of reducing staff continued across nearly all industries, according to the barometer, which is based on roughly 9,500 monthly company reports on staffing plans for the next three months. Service providers, after a brief recovery in the previous month, have again become noticeably more cautious with new hires. The hospitality sector, in particular, is planning further job cuts.
Retail companies are also preparing for fewer employees, despite the upcoming Christmas season. Only law firms and tax offices plan to hire significantly, the Ifo explained. Additionally, demand for construction workers has “slightly” increased, with the employment barometer in this sector reaching its highest level since May 2022.
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