Despite positive economic signals, companies in Germany are increasingly planning job cuts, as indicated by a recent survey by the Ifo Institute in Munich.
Despite signs of economic improvement in Germany, an increasing number of companies are planning to cut jobs. The Employment Barometer has dropped to 93.1 points in February from 93.4 points in January, according to the Ifo Institute's survey results. Klaus Wohlrabe, head of Ifo surveys, noted a growing hesitance in the job market, with many firms opting to lay off staff instead of creating new positions.
The job cuts are particularly prominent in the export-reliant industrial sector, where almost all industries are reportedly planning layoffs, with the automotive industry facing significant pressure. Factors such as high tariffs imposed by the United States and rising competition from Chinese manufacturers are contributing to the struggles in this sector. The survey indicates that the employment outlook is becoming increasingly grim, especially for traditional manufacturing jobs.
In the service sector, the barometer has also dipped back into negative territory in February, yet some industries, like IT services, continue to seek qualified personnel. This contrasting trend illustrates a complex labor market landscape, where certain fields thrive while others brace for layoffs, raising concerns about the overall employment health in Germany amid fluctuating economic prospects.
