Businesses in Germany are planning to employ fewer staff, the ifo Institute has said, as the ifo employment barometer fell to 93.0 points in February.
This is down from 93.4 points in January, indicating that the “situation on the labour market remains tense,” commented Klaus Wohlrabe, head of ifo surveys.
Wohlrabe also cited “structural changes in the economy” as a reason for the drop off in employment.
Job cuts by sector
In the industrial sector, planned job cuts are comparatively pronounced, the data showed, despite an increase in the barometer in February.
The services industry, meanwhile, also plans to be ‘somewhat more restrictive’ in personnel planning over the coming months, with IT service providers in particular having ‘put the brakes on’.
The situation in the retail sector, meanwhile remains ‘difficult’, the ifo Institute said, with businesses seeking to maintain operations with fewer employees. Finally, in construction, there has been a ‘slight trend’ towards fewer employees.
Inflation remains an issue
Elsewhere, the ifo Institute added that inflationary pressure in Germany remained steady in February, with its price expectations index recording a slight decrease to 19.4 points, down from 19.5 points in January.
“Despite the weak economic development, inflation in Germany remains above the European Central Bank’s target for the time being,” commented ifo economic chief Timo Wollmershäuser.
According to the data, while service providers are less likely to raise their prices, companies in industry and retail see more scope for price increases. Read more here and here.
