In March, the pace of job cuts by German firms eased somewhat. Klaus Wohlrabe, head of the Ifo surveys, said on Friday that companies are planning layoffs less frequently, but it is still too early to speak of a genuine trend reversal. The institute’s Employment Barometer moved up to 93.4 points in March from 93.1 in February.
Within industry, workforce reductions continue to be a central concern. Almost every sector is still planning to cut staff, although the intensity has lessened compared to earlier months. Wohlrabe noted that the structural adjustment process in industry is still ongoing.
The situation for service providers has improved slightly. Plans for layoffs and new hires are now roughly balanced. Companies in construction likewise intend to keep their employee numbers largely stable.
Retail, on the other hand, is again looking to reduce personnel. Wohlrabe highlighted that the current geopolitical environment remains an uncertainty factor. He warned that if conditions deteriorate further, the labour market could face renewed pressure.
