Germany’s labor market is showing signs of continued strain, according to recent data released by the Ifo Institute in Munich. The institute’s employment barometer registered a slight decrease in August, falling to 93.8 points from 94.0 points in July.
Klaus Wohlrabe, head of Ifo surveys, stated that the labor market is not experiencing an improvement. He attributed this to the stagnating economic climate, which is prompting businesses to exercise caution in their personnel planning.
Within the industrial sector, the barometer did show a slight increase, though net job losses continue. Across key industrial branches, the number of layoffs exceeded new hires. A more pronounced downturn is apparent in the service sector, where the indicator has fallen into negative territory. Temporary employment agencies are facing dwindling demand, though the tourism sector is actively increasing its workforce. The construction industry anticipates maintaining its current staffing levels. While the retail sector continues to reduce personnel, the pace of these reductions is slowing compared to previous months.
