Companies across Germany are increasingly planning to cut staff. Klaus Wohlrabe from the Ifo Institute noted on Friday that the labor market remains weak, adding that Germany is still far from achieving a sustainable revival in employment. The relevant employment barometer dropped in June to 92.3 points, compared to 93.9 points in May.
Even within the industrial sector, the labor market remains strained. Although the barometer has seen a slight improvement here, plans for staff reductions still dominate the outlook. Job cuts are picking up again in the wholesale and retail sectors, while the barometer for service providers showed a significant decline.
The situation remains particularly challenging for temporary staffing firms and the tourism industry. Conversely, very few changes were planned in the construction trades; according to the Ifo Institute, these companies intend to maintain their current staffing levels largely unchanged.
