ifo Employment Barometer Sees a Minimal Decline (August 2023)
The willingness among companies in Germany to hire new staff has slightly decreased. The ifo Employment Barometer fell to 97.0 points in August, down from 97.1 points in July. “At the moment, plans for layoffs and hires are just balancing each other out,” says Klaus Wohlrabe, Head of Surveys at ifo. “Because of the economic downturn, many companies are holding back on hiring.”
“However, employment remains at record levels,” Wohlrabe adds. “In addition, there continue to be many job openings with a simultaneous shortage of skilled workers.” The weak manufacturing situation is reflected in that sector’s employment plans. Here, layoffs are increasingly being considered. This is also true of the trade and construction sectors, where weak demand is becoming increasingly noticeable. In the service sector, on the other hand, the willingness to hire has improved again somewhat, with demand for new employees especially strong in the IT and tourism industries.
