German companies are slowing planned job cuts, according to the latest employment barometer from the Munich-based Ifo Institute. The index rose to 93.4 points in January, up from 91.9 in December, indicating a modest improvement in labour market sentiment.
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Despite the increase, experts warn that workforce reductions will continue across most industrial sectors. Retail firms also expect to operate with fewer employees in the new year. In contrast, the service sector shows stability, with positive and negative responses balanced. IT service providers are actively recruiting, while the construction industry anticipates no significant changes in staffing levels.
Klaus Wohlrabe, head of Ifo surveys, noted, 'Job losses are slowing down, but have not yet come to a standstill. The labour market remains under pressure, especially in industry – a turnaround is not yet in sight.'
The findings highlight a cautious optimism: while overall employment pressure is easing, uncertainty persists across key sectors of the German economy, particularly in manufacturing and retail, as companies navigate ongoing economic challenges.
Source: www.moebelmarkt.de
