The German job market worsened significantly in April, with businesses increasingly implementing staff reductions. This conclusion comes from the latest employment barometer calculated by the Ifo Institute for the “Handelsblatt”. The index dropped in April to 91.3, a lower figure than the benchmark recorded in December 2025.
According to Klaus Wohlrabe, Head of Ifo Surveys, the pressure on the labor market is becoming palpable. He stated that many companies are reacting by strengthening job cuts, noting that new hires are becoming the exception rather than the rule. The expert was skeptical about an immediate recovery, adding that the market is unlikely to improve without greater certainty in planning.
For context, the index had remained above 93 from January through March. Generally, a reading below 100 indicates that more companies are planning to cut positions than they are planning to fill. The Ifo employment barometer is based on approximately 9,500 monthly reports from businesses regarding their staff plans.
The hardest hit areas are the industrial sector, where the barometer fell by 20 points, and the retail sector, which mirrored this poor performance. In contrast, the decline in the service sector was relatively minor. The construction industry, however, saw no easing of its negative trend. The only groups reporting a strong positive trend in staffing are, once again, lawyers, tax advisors, and certified public accountants.