German companies continue to reduce headcount, although at a slower pace than observed in the previous month. The employment barometer published by the Ifo Institute in Munich edged up in July to 94.0 points, a slight increase from 93.7 points registered in June.
“We are still a significant distance from a recovery in the labor market” stated Klaus Wohlrabe, head of Ifo surveys. “Companies remain cautious and are still cutting more jobs than they are creating.
Following a substantial decline last month, the employment barometer in the industrial sector has seen a modest rise. However, few sectors currently perceive room for new hires. Service providers anticipate a largely stable workforce; while the hospitality sector continues to shed positions, the IT sector is actively seeking personnel. The construction sector remains optimistic and is looking for additional workers. Conversely, both wholesale and retail trade are forecasting a lower need for staff.
