German firms are increasingly planning to cut staff. The Munich‑based Ifo Institute’s Employment Barometer slipped to 93.1 points in February, down from 93.4 in January, the institute announced on Wednesday.
Klaus Wohlrabe, who leads the Ifo surveys, explained: “The hesitation in the labour market is rising again. Many companies are planning to lay off more employees instead of creating new positions”.
In industry, job losses remain a key concern. Nearly every sector reports plans to reduce personnel, with the automotive industry standing out for its high adjustment pressure.
The barometer for service providers has fallen back into negative territory. Still, certain fields-such as IT service firms and legal and tax advisers-continue to recruit aggressively. Retailers also plan to operate with leaner staffs. In contrast, the construction sector’s barometer edged upward, signalling that companies there intend to hire slightly more people.