The job market situation in Germany deteriorated noticeably in April, with companies implementing increased staff reductions. This finding comes from the Ifo Institute’s employment barometer, calculated for the “Handelsblatt”. The index dropped to 91.3 in April, marking a fall below the value last observed in December 2025.
Klaus Wohlrabe, head of Ifo surveys, noted that “The pressure on the labor market is noticeably increasing. Many companies are reacting with increased layoffs. New hires tend to be the exception”. He cautioned that the labor market is unlikely to recover without greater planning certainty.
This sharp decline follows a period where-from January to March-the value remained above 93. The Ifo employment barometer is based on roughly 9,500 monthly reports from companies regarding their staffing plans. As a general metric, a value below 100 suggests that more companies are planning to cut jobs than to hire staff.
The decline in workforce size is hitting the industrial sector hardest, where the barometer fell by 20 points. The retail sector is also reporting similarly poor numbers. In contrast, the reduction in the services sector remains comparatively small, while the construction industry has managed to keep the situation from worsening further. The only sectors reporting stronger hiring are lawyers, tax advisors, and corporate auditors.
