Lowest level since 2020: ifo Employment Barometer falls to 92.5 points in September

More and more companies in Germany are responding to the persistently weak economy by cutting staff. The ifo Institute’s (https://www.ifo.de) current employment barometer has now fallen to 92.5 points after 93.8 points in August. This is the lowest level since June 2020.

“Cautious mood”

“The mood on the labor market remains cautious. Because there is no sign of an upturn for the time being, many companies are putting the brakes on staffing issues,” says Klaus Wohlrabe, head of ifo surveys, commenting on the current economic situation.

Staff reductions are tending to be gradual, with vacant positions simply not being filled. No large waves of layoffs have been observed, at least for the time being. In industry, the barometer has fallen slightly.

Mechanical engineering companies are cutting back

According to economic researchers, vehicle manufacturing and mechanical engineering in particular are planning to reduce their workforce. The indicator fell noticeably among service providers. In the transport and logistics sector, individual companies have already announced layoffs.

The construction industry, which had been in a slump for a long time, is now recovering. Here, the number of employees remains largely stable for the time being. The situation is different in the retail sector, where companies are noticeably reducing their workforce, the report concludes.