Germany faces wave of layoffs

(Patria) - German companies are not only losing the will to create new jobs, but will likely start laying off workers as well, warns Klaus Wohlrabe from the Ifo economic institute.

The Ifo employment barometer fell to 95.5 points in January, slightly lower than in December. An index of 100 points indicates the status quo, above employment plans, and below the opposite.

- The difficult economic situation is now reflected in staffing plans - said Wohlrabe. Companies, he added, are now reluctant to hire.

In general, the industry is planning layoffs, although this indicator has risen slightly, to a further very negative minus 13.

The situation is similar in retail, as more and more retailers are considering layoffs due to falling sales, according to researchers from the Munich institute.

In the service sector, companies are still looking for new staff, but fewer, especially in IT companies and consulting. The barometer is also negative in the construction industry.