German Businesses Grow Cautious in Staff Planning Again
According to the Ifo Employment Barometer, German companies are becoming more cautious in their staffing plans, with the index falling to 93.7 points in June, down from 95.1 points in May. The employment market has not yet achieved the trend shift, despite a better economic sentiment, said Klaus Wohlrabe, head of Ifo surveys, adding that new hires are still lacking due to a lack of orders.
The Ifo Employment Barometer, which had risen for five consecutive months, has now declined in the industrial sector. Almost all industrial branches are showing a net reduction in staff numbers. In the service sector, there is a general standstill in staffing plans, with significant differences between areas. IT service providers, after a period of restraint, are now planning to rebuild their workforce. The hospitality and hotel industry, on the other hand, is cutting staff. The construction industry is planning to maintain its current personnel levels, while retailers, both large and small, are planning to reduce their workforce.