The German institute announced today that the Ifo Employment Barometer dropped to 92.5 points in September, the lowest level since June 2020, down from 93.8 points in August.
“The climate in the labor market remains subdued,” said Klaus Wohlrabe, head of Ifo’s Surveys, noting that “as the recovery has not materialized so far, many companies are holding back on their staffing levels.”
Wohlrabe also mentioned that “layoffs tend to be gradual, with positions simply not being filled.”
“We are currently not seeing large waves of layoffs.”
By sector, Wohlrabe pointed out that “the automotive and mechanical engineering industries, in particular, plan to reduce staff” and that the indicator decreased significantly among service providers.
“Some companies in the transport and logistics sector have already announced layoffs,” he stated, adding that in the construction industry, the workforce is currently stable.
The situation differs in the retail sector, where companies are noticeably reducing their workforce, he noted.
