The willingness of German companies to hire new employees collapsed this month, according to the latest survey of the Munich economic institute “Ifo”, the conclusions of which were received today in BTA.
Ifo’s employment barometer fell to 95.8 points in September compared to 97 points in August. This is the lowest level of the indicator since February 2021.
“The strong increase in employment observed in the last few months has stopped,” explained Klaus Vollrabe, head of research at Ifo.
“Due to the lack of orders, companies are quite cautious in filling vacancies,” he added.
According to Vollrabe, “companies’ willingness to hire new staff is likely to increase again once the economy recovers.”
“In the medium term, demographic change will deprive the labor market of more and more workers. In response to the lack of new orders, many manufacturers plan to hire fewer employees. This also applies to the trade and construction sectors,” warns Wollrabe.
Similar problems are also observed in the service sector. Employers’ recruitment efforts have weakened significantly. The caution shown in other sectors is also affecting service providers.