Home breadcru News breadcru Policy breadcru German companies to reduce hiring amid economic slowdown

German companies to reduce hiring amid economic slowdown

04 Mar '24
1 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • The ifo Employment Barometer in Germany declined to 94.9 in February 2024 from 95.5 in January 2024, indicating a reduced interest in hiring amid economic slowdown.
  • The country's manufacturing and trade sectors signalled job cuts in February, exacerbated by weak consumer spending, affecting stationary retailers aiming to operate with fewer staff.
German companies are showing a decreased inclination towards hiring new staff, as the ifo Employment Barometer dropped to 94.9 points in February from 95.5 points in January. The downturn reflects a cautious approach by businesses in light of the current economic sluggishness, with some companies even considering layoffs.

The manufacturing sector, in particular, is signalling potential job cuts across nearly all industries, including trade. The situation is further exacerbated by weak consumer spending, which poses a significant challenge for stationary retailers. These businesses are particularly affected and are seeking to navigate through the period of reduced consumer activity with a leaner workforce, according to ifo Institute.

ALCHEMPro News Desk (DP)

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