German companies plan fewer hirings and more layoffs

(Patria) - As the German economy continues to falter, fewer companies want to hire, and more are considering layoffs, according to a survey by the ifo Institute.

The ifo Institute's monthly employment barometer, based on a regular survey of around 9,500 German companies, has fallen again.

The barometer is at its lowest point since the Covid pandemic began in 2020, but unlike the beginning of the pandemic, this year's decline is not as sharp.

- Fewer companies are hiring, and the share of firms wanting to cut jobs is growing - says ifo director Klaus Wohlrabe.

Layoffs are being considered in almost all sectors, with the metal industry, car manufacturers, and their suppliers being the hardest hit.

The retail sector is also planning to reduce jobs, and the negative momentum has continued in recent months among service providers as well.

While the tourism industry is hiring, personal service providers and restaurateurs are laying off staff.

Despite the crisis, there are no signs of a major wave of layoffs in the construction industry, where companies are trying to secure new jobs and retain employees.