Companies are hesitant to hire new employees and layoffs are becoming more likely, say economic researchers. Not all sectors are affected equally.
Companies’ willingness to hire staff is decreasing. The Ifo employment barometer fell to 95.5 points in January, after 96.5 points in December. “The difficult economic situation is now also reflected in personnel planning,” said survey leader Klaus Wohlrabe: “Companies are more reluctant to hire new people. The first layoffs are becoming more likely.”
On balance, industrial companies are planning to cut staff. However, the barometer here rose from minus 13.5 to minus 13.0. “In retail, more and more companies are thinking about layoffs because customers are not coming,” said the economic researchers. In the service sector, the bottom line is that companies still want to hire staff, but here too the willingness to hire has fallen. “This applies in particular to IT service providers and the consulting industry.” The barometer also fell in the construction industry.
Source: Stern
