ifo Employment Barometer Rises (October 2023)

Companies in Germany are once again becoming more willing to hire new staff. The ifo Employment Barometer rose to 96.2 points in October, up from 95.8 points in September. “Nevertheless, companies continue to be cautious about making new hires,” says Klaus Wohlrabe, Head of Surveys at ifo. “The lack of new orders is still having a negative effect.”

“This caution persists despite companies’ continued concerns about the shortage of skilled workers,” Wohlrabe adds. In manufacturing, the barometer dropped again, with energy-intensive industries in particular planning to make do with fewer employees. In trade and construction, there is a similar tendency – although less pronounced – toward a reduced workforce. Only in the service sector is there an appetite, albeit a small one, to increase headcount. IT service providers and tourism companies in particular are looking to recruit new staff.