A leading German economic institute reported on Wednesday that companies in Germany are considering cutting jobs as Europe’s largest economy continues to falter.
The employment barometer of the ifo Institute for Economic Research in Munich fell for the third month in a row in August, from 95.3 in July to 94.8 points.
Weak economic growth is also reflected in weak employment figures, said research leader Klaus Wohlrabe. “The lack of orders is causing companies to put the brakes on hiring.”
The ifo barometer is considered an important early indicator for the German labor market.
Every month, the institute asks approximately 9,500 companies whether the number of employees is expected to increase, decrease or remain approximately the same over the next three months.
In the industrial sector, “more companies are considering job cuts,” the August report said. A slump in consumer spending has also hit retail, it suggested.
Despite the crisis in the German construction sector, employers expect to retain their employees, while service providers are seeing a slight increase in employment, particularly in the IT and tourism sectors.
