Weakening of ifo Employment Barometer
German companies continue to hire new employees but somewhat more cautiously than recently. The ifo Employment Barometer fell to 103.0 points in January after 104.1 points in December. Increasing concern about the German economy has led companies to be somewhat more cautious in their hiring.
The employment barometer fell in all four survey sectors, although companies are still planning to increase staff levels. The sharpest decline was observed in the manufacturing sector. The weakening industrial economy is also reflected in the search for personnel. Service providers remain the driving force on the German labour market, which is where most new jobs are being created. The construction industry will also continue its strongly expansive hiring policies.
