German firms show caution in hiring amid economic uncertainties: ifo

30 Apr '24

1 min read

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Insights

The ifo Employment Barometer in Germany dropped to 96 points in April from 96.3 in March, indicating a cautious approach to hiring among businesses.
Driven by a shortfall in orders, sectors like manufacturing, particularly energy-intensive industries, are planning to reduce their workforce.
The trade sector is also moving towards a smaller workforce.

In Germany, businesses are adopting a more cautious approach to their staffing plans, as evidenced by the recent decline in the ifo Employment Barometer. According to the ifo Institute, the barometer dropped to 96 points in April from 96.3 points in March, indicating a slowdown in hiring intentions among companies.

This trend of cautious personnel planning is largely driven by a shortfall in orders, prompting companies across various sectors to reevaluate their recruitment strategies. Notably, the manufacturing sector, particularly those industries that are energy-intensive, is planning to scale back on recruitment and even reduce its existing workforce due to the economic pressures.

Similarly, the trade sector is also showing signs of a shift toward a smaller workforce. This aligns with the broader trend observed across other sectors, highlighting a potentially challenging period ahead for job growth in Germany, as per the ifo Institute.

Fibre2Fashion News Desk (DP)

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