ifo Employment Barometer in Germany Falls (September 2023)
The willingness among companies in Germany to hire new staff has taken a knock. The ifo Employment Barometer fell to 95.8 points in September, down from 97.0 points in August. This is its lowest level since February 2021. “The robust expansion of employment seen over the past few months has come to a standstill,” says Klaus Wohlrabe, Head of Surveys at ifo. “Due to a lack of orders, companies are being rather cautious about filling vacant positions.”
“Companies’ willingness to hire new staff will presumably rise again once the economy recovers,” Wohlrabe adds. “In the medium term, demographic change will deprive the labor market of more and more workers.” In response to a shortage of new orders, many manufacturing companies are planning to make do with fewer employees. This is also true of the trade and construction sectors. The service sector, too, is currently losing a little labor market traction. Recruitment efforts have slowed noticeably. Caution exercised in other industries is also having an impact on personnel service providers.
