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Apparel/Garments

German firms turn cautious on hiring as labour market weakens: ifo

22 Dec '25
1 min read
German firms turn cautious on hiring as labour market weakens: ifo
Pic: Shutterstock

Insights

  • The ifo Employment Barometer fell to 91.9 in December, its lowest level since May 2020, reflecting ongoing job losses, especially in industry.
  • Job cuts are continuing across most sectors in Germany, with clothing manufacturers particularly reducing staff, according to the ifo Institute.
  • Companies are increasingly cautious about hiring as the weak economy weighs on the labour market.
German companies have grown more cautious about hiring, and the majority are cutting jobs. Reflecting this trend, the ifo Employment Barometer fell to 91.9 points in December from 92.5 in November, its lowest level since May 2020.

Job cuts are continuing across most industrial sectors, with clothing manufacturers in Germany particularly planning staff reductions, according to the ifo Institute.

The picture is similar in trade, with companies planning to employ fewer staff in the new year.

“In 2025, we experienced gradual job cuts, especially in industry,” said Klaus Wohlrabe, head of surveys at ifo. “The weak economy is continuing to slow down the labour market.”

ALCHEMPro News Desk (RR)
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