The employment gauge fell in February to 94.9 points. The industrial and construction sectors are the most worrisome. IT continues to make major recruitment efforts, according to experts at the German Ifo Institute.
German companies expect to hire fewer workers. This is the conclusion of the new employment measure issued by the German Ifo Economic Institute, which fell to 94.9 points in the second month of the year, less than the 95.5 points recorded in January.
“With the economy so slow, companies are postponing hiring new people. Even dismissals cannot be ruled out,” Klaus Vollrabe, director of investigations at Ifo, explains on Tuesday.
The decline in the employment measure in the world's largest economy is accompanied by a less positive outlook for the industrial sector, where there are even signs of “job cuts”.
“This applies to almost all industries as well as to trade. Weak consumer spending is a problem, in particular, for stationery retailers, who are looking to run their businesses these days with fewer employees.
The same thing happens in the construction sector. “The difficult situation in the construction sector is reflected in the development of the number of workers. Although the gauge is still somewhat positive in the services sector, hiring efforts have slowed significantly.
Good news in the technology space, as the desire to hire IT service providers and consultants remains strong.
In 2023, there was a decline in Germany's GDP of 0.3% compared to the previous year, and in the fourth and final quarter the German economy also recorded a contraction of 0.3% compared to the previous year. The months of October, November and December 2022 with the lowest investment nationwide. It was confirmed this week by the Census Bureau Destatis.
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