Too few orders, too few customers – companies in Germany are adjusting their personnel planning.
Companies in Germany are more cautious in their personnel planning. According to the Ifo Institute, significantly more companies in industry and trade are planning job cuts than new hires. The Ifo employment barometer fell in August for the third time in a row. It now stands at 94.8 points, after 95.3 points in July.
“The weak economic development is also reflected in weak employment growth,” says Ifo survey director Klaus Wohlrabe. “The lack of orders is slowing down companies when it comes to hiring new staff.”
Every month, the Ifo Institute surveys around 9,500 companies on whether the number of their employees is likely to increase, decrease or remain roughly the same over the next three months. The employment barometer is considered to be an important early indicator for the German labor market.
In industry, the barometer has fallen further into the negative. “More and more companies are considering cutting jobs,” write the economic researchers. The same applies to retail, where customers are missing from stores. In the construction industry, employees are to be retained despite the crisis. There is a slightly positive attitude trend among service providers, especially in the IT sector and in tourism.
Source: Stern
