German companies are demonstrating a reduced willingness to hire new staff, reaching the lowest levels seen in over four years, according to data released by the Ifo Institute on Monday. The employment barometer dropped to 93.7 points in October from 94.0 points in September, marking the lowest reading since July 2020.
“The situation in the labour market has been on a negative trend for months, not sharply, but continuously. Rather than filling vacancies, companies are more likely to lay off employees, said Klaus Wohlrabe, Head of ifo Surveys.
The number of unemployed individuals in Germany rose more than anticipated in October, according to figures from the federal labour office, as the anticipated autumn upturn failed to materialise this year. Germany’s economy, which was already the weakest among its larger euro zone counterparts and other G7 nations last year, is projected to contract again in 2024. The German Chamber of Commerce and Industry (DIHK) indicated last month that its survey of businesses revealed a lack of optimism for the upcoming months.
Additionally, Ifo’s employment barometer for the manufacturing sector also declined due to persistently low new orders, while the trade sector saw a slight increase, though it remains at similarly low levels.
