The labor market outlook is getting worse. The Munich Ifo Institute’s employment barometer fell one point to a seasonally adjusted 92.5 points in November. These numbers are as bad as they were in September and December – but the barometer has not been worse since the summer of 2020. Federal Employment Agency published its latest labor market figures on Friday.
“Many companies continue to carry out layoffs,” said Klaus Wohlrabe, head of the Ifo survey. “Due to the sluggish economy, labor market development remains weak.”
This value is currently low, especially in the manufacturing sector with a sub-index of minus 20.9. According to Ifo, the trend of reducing labor in industry continues in almost all sectors. The retail outlook is also very bad, namely minus 14.4 points. Even though there is Christmas business coming up, companies there plan to have fewer employees.
The hotel industry plans layoffs
In the services sector, the barometer fell very significantly compared to the previous month and is now at minus 4.2 points. The hotel industry in particular plans to reduce employment further. On the other hand, the outlook for legal advice and tax offices is quite positive.
Good news comes from the construction industry. The sub-index there rose significantly to 4.5 points – the highest value since May 2022.
© dpa-infocom, dpa:251126-930-342141/1
