The reduction of jobs by German firms slowed a little in March. “Companies are less likely to cut staff than before” said Klaus Wohlrabe, head of Ifo’s surveys, on Friday. “But it’s still too early to speak of a real turning point”. The institute’s Employment Barometer rose to 93.4 points in March, up from 93.1 the previous month.
Industrial firms still see staff cuts as a central issue. Nearly every sector is planning layoffs, though the intensity is slightly lower than in recent months. “The structural adjustment process in industry continues” Wohlrabe explained.
Service providers have seen a modest improvement. Plans to lay off and to hire are roughly balanced, and construction companies intend to keep their workforce largely unchanged.
Trade firms, however, are again looking to reduce personnel. Wohlrabe noted that the current geopolitical situation remains a source of uncertainty. “If conditions deteriorate further, this could again put added pressure on the labour market” he said.