German businesses show signs of stabilizing the job market, with the Ifo employment barometer rising to 95.2 points in May, up from 94.0 points in April. According to Klaus Wohlrabe, the head of Ifo surveys, the labor market is exhibiting initial signs of stabilization, but a genuine trend reversal hinges on the continued economic development.
While the industrial sector has seen a five-month streak of rising barometers, the majority of companies are still cutting jobs. In contrast, service providers are gradually increasing their workforce, particularly in the temporary work agency sector, where cautious optimism is emerging. In the retail sector, however, job cuts continue to prevail. Even in the construction industry, where the job reduction is slowing, the majority of companies still anticipate a decrease in employment.