ifo Employment Barometer Falls (February 2024)

Companies in Germany are looking to hire less staff. In February, the ifo Employment Barometer fell to 94.9 points, down from 95.5 points in January. “With the economy so sluggish, companies are putting off hiring new people,” says Klaus Wohlrabe, Head of Surveys at ifo. “Even layoffs can no longer be ruled out.”

In manufacturing, the signs continue to point to job cuts. This applies to almost all industries, and also to trade. Weak consumer spending is a problem for stationary retailers in particular, who are looking to manage current business with fewer staff. Similarly, the difficult situation in construction is reflected in headcount development. Although the barometer is still slightly positive in the service sector, recruitment efforts have slowed considerably. However, the willingness to hire IT service providers and consultants remains strong.