Job losses in Germany have recently begun to slow down slightly. According to the Munich Ifo Institute’s employment barometer, the indicator rose in May to 93.9 points, up from 91.4 points in April. However, Ifo Chief Economist Timo Wollmershäuser noted that despite this lift, more companies are still planning to reduce staff than to hire. He explained that businesses remain cautious in their personnel planning due to the weak overall economic development.
The job market situation within the industrial sector remains challenging and unchanged. Although the barometer saw a small increase, the nation continues to experience a net loss of jobs. This persistent downward trend also applies to the wholesale and retail trade. In contrast, the barometers for service providers recovered after a sharp decline in the previous month. Difficult conditions continue in the logistics and tourism sectors, while the building industry has experienced a nearly static situation for several months, with companies planning to maintain their current workforce levels.
