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German firms hesitant to hire as ifo employment barometer drops in Jan

30 Jan '24
1 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • German companies' willingness to hire new staff decreased, as the ifo Employment Barometer fell to 95.5 in January 2024 from 96.5 in December 2023.
  • Manufacturers expect a workforce reduction, with a minor improvement in the barometer from minus 13.5 to minus 13.
  • Pessimism across industries is prevalent, with trading companies considering layoffs.
In Germany, companies are showing a reduced willingness to hire new staff, as indicated by the ifo Employment Barometer's decline to 95.5 points in January 2024, from 96.5 points in December 2023. Manufacturers anticipate a decrease in their workforce, with the barometer in this sector slightly improving from minus 13.5 to minus 13.

However, pessimism is prevalent across nearly all industries. An increasing number of trading companies are considering staff layoffs, as customer footfall declines, as per the ifo Institute.

“The difficult economic situation is now also being reflected in personnel planning,” said Klaus Wohlrabe, head of surveys at ifo. “Companies are rather reluctant to hire new staff. An initial round of layoffs is becoming more likely.”

ALCHEMPro News Desk (DP)

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