Companies in Germany Cutting More Jobs (June 2026)

Companies in Germany are planning to cut more jobs again. The ifo Employment Barometer fell to 92.3 points in June, down from 93.9 points in May. “The labor market remains weak,” says Klaus Wohlrabe, Head of Surveys at ifo. “Germany is currently still a long way from a sustained recovery in employment.” 

The labor market in manufacturing remains tense. Although the barometer has improved slightly, plans to cut jobs still predominate. In wholesale and retail, job cuts are once again on the rise. Among service providers, the barometer fell considerably. The situation remains particularly difficult for temporary employment agencies and in tourism. In construction, on the other hand, hardly any changes are planned. Companies intend to keep their staffing levels largely constant.