GERMANY: Companies scale back hiring plans

German companies are currently hiring a slightly lower number of new staff than in May, according to the Ifo Employment Barometer that edged downwards in June to 107.8 index points from 108.2 points last month and just above levels seen last August.

The Ifo report said that the service sector remains the main driver behind these developments, having surveyed 9,500 businesses in manufacturing, construction, wholesaling, retailing and the services sector. The companies are asked to report on their employment plans for the coming three months. They can describe their plans for the number of employees for the coming six months as “increasing”. “stable”. or “decreasing”.
Ifo said that despite the deterioration in the business climate, manufacturers still intend to increase their staff base. The barometer in manufacturing rose for the sixth consecutive month, but the employment dynamic in distribution weakened clearly in June.
In construction hiring by contractors remained sporadic, while service providers, by contrast, remain most willing to hire extra staff, the Ifo said.