German companies are planning slightly fewer layoffs overall. The Ifo employment barometer increased slightly in October to 95.5 points, up from 95.1 points the previous month. According to Klaus Wohlrabe, head of the Ifo surveys, companies are adopting a more cautious approach to redundancies, though he noted that the current upswing lacks the strength needed for widespread job creation.
The situation in industrial companies has slightly worsened compared to September. Companies continue to anticipate hiring fewer employees, particularly within the automotive sector, where further job cuts are planned. Conversely, manufacturers of data processing equipment, as well as those producing electronic and optical goods, are planning to hire more staff. This comes after the industry had initially anticipated hiring during early 2023.
Service providers, meanwhile, are leaning toward increasing their workforce. There is also growing optimism among temporary staffing agencies, reflective of improved economic outlooks. However, companies in the retail sector are maintaining their plans for no new hires, and a slight reduction in positions is also projected for the construction industry.
