Companies in Germany are intensifying job reductions as economic stagnation continues to weigh on the labour market. According to the Munich-based Ifo Institute, the employment barometer fell slightly to 93.8 points in August, down from 94.0 in July, signalling ongoing caution in workforce planning.
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While the industrial sector saw a slight recovery in sentiment, layoffs still outweighed new hires across most key industries. The service sector indicator slipped into negative territory, with temporary employment agencies particularly affected by declining demand. Tourism, however, is continuing to hire, and the construction industry is expected to maintain largely stable employment levels.
Retail also experienced continued job cuts, though at a slower pace than in previous months.
Klaus Wohlrabe, head of Ifo Surveys, stated that 'the labour market isn't emerging from the crisis,' emphasising that the sluggish economy is forcing companies to remain conservative in their personnel strategies.
The latest data underscores the fragility of the German labour market, despite occasional improvements in business sentiment in recent months. Economists warn that without stronger economic momentum, job losses may persist through the remainder of the year, further dampening consumer confidence and spending.
Source: www.moebelmarkt.de
