ifo Employment Barometer Falls (October 2022)
The willingness among companies in Germany to hire new staff continues to wane. The ifo Employment Barometer fell to 97.7 points in October, down from 99.4 points in September. This is its lowest level since April 2021. Reports of new hires and layoffs are currently roughly in balance. Caution is spreading in the labor market.
In manufacturing, the Employment barometer dropped again; the sector is not currently expecting to increase employment. Service providers, too, were less willing to hire new staff. In trade, people’s current reluctance to spend is leading to difficulties, and businesses in the sector have revised their staffing plans: layoffs are expected in retail. The situation in construction is not quite as bleak: although no increase in employment is expected at present, neither is a reduction.
