German hiring confidence strengthens in March 2024: ifo

28 Mar '24

1 min read

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Insights

In March 2024, Germany's ifo Employment Barometer rose to 96.3, indicating increased business confidence and a willingness to hire, especially skilled workers.
However, manufacturing and trade sectors expect workforce reductions, despite a hopeful outlook from rising real wages boosting consumer spending and potential staffing increases in retail.

German companies are showing renewed confidence in expanding their workforce, according to the latest ifo Employment Barometer which climbed to 96.3 points in March 2024 from 94.9 points in February 2024. This uptick signifies a growing optimism among businesses, fuelled by their improved ability to gauge economic conditions, leading to an increased willingness to hire, particularly skilled workers.

Despite the positive momentum across most sectors, the manufacturing and trade industries present a contrasting picture. Manufacturing companies, along with the trade sector, anticipate a reduction in their workforce. This trend underscores the sector-specific challenges that persist even as the broader economic outlook appears to brighten.

However, there is a silver lining for the trade sector. The anticipation of rising real wages offers a glimmer of hope for a resurgence in consumer spending. Retailers, in particular, are optimistic that this potential increase in consumption could positively influence their staffing plans, suggesting a cautious yet hopeful outlook for the near future, as per ifo.

Fibre2Fashion News Desk (DP)

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