German businesses continue to reduce headcount, although the rate of job cuts has slowed compared to the previous month. The Ifo Institute’s employment barometer, based in Munich, edged up slightly in July, reaching 94.0 points, a rise from 93.7 points recorded in June.
“We are still a considerable distance from a genuine upturn in the labor market” stated Klaus Wohlrabe, head of Ifo surveys. “Companies remain cautious and are still eliminating more jobs than they are creating.
Following a significant decline in the prior month, the employment barometer in the industrial sector has seen a minor increase. However, few sectors are currently envisioning opportunities for new hires. Service providers anticipate a largely stable workforce; while the hospitality sector continues to experience job losses, the IT sector is actively seeking personnel. The construction industry expresses optimism and is recruiting new workers. Conversely, both wholesale and retail trade are forecasting a reduced need for staff.