ifo Employment Barometer Falls Again (January 2021)
German companies’ hiring plans shrank slightly at the start of the new year. The ifo Employment Barometer fell to 95.0 points in January after measuring 95.5 points in December. The lockdown is leading to more layoffs, particularly in the retail sector.
In manufacturing, the barometer rose for the eighth consecutive month. Nevertheless, the companies that say they will downsize their workforce are still in the majority. Among service providers, the figures for new hires and layoffs are more or less balanced. The IT sector and management consultancies are still planning to expand their workforce. More layoffs have been announced in the retail sector due to the lockdown. The only positive exception is supermarkets, which are still looking to take on new staff. Despite the winter months, some companies in the construction industry are also looking to recruit.
