German companies’ hiring plans drop to four-year low, Ifo finds

Published On : 11/04/2024

BERLIN (Reuters) – German companies are less willing to hire new staff than at any point in more than four years, data from the Ifo institute showed on Monday, as weakness in Europe’s largest economy has left its mark on the country’s labour market.

Ifo’s employment barometer fell to 93.7 points in October from 94.0 points in September, the lowest level since July 2020.

“The situation on the labour market has been on a negative trend for months, not sharply, but continuously,” said Klaus Wohlrabe, head of Ifo surveys. “Rather than filling vacancies, companies are more likely to lay off employees.”

The number of people out of work in Germany rose more than expected in October, federal labour office figures showed, as an autumn upturn has largely failed to materialise this year.

Germany’s economy, already the weakest among its large euro zone peers and other G7 countries last year, is set to shrink again in 2024, and a leading business group, the German Chamber of Commerce and Industry (DIHK), said last month that a survey of companies found little optimism for the coming months.

Ifo’s employment barometer for manufacturing also dropped again due to still subdued new orders, while trade saw a slight rise, though it remains at a similarly low level.

(Writing by Miranda Murray; Editing by Kirsten Donovan)

Uma Rajagopal

Uma Rajagopal has been managing the posting of content for multiple platforms since 2021, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune. Her role ensures that content is published accurately and efficiently across these diverse publications.