The job market in Germany seems to be recovering again. At least if you take a first quick look at the ifo Institute‘s employment barometer published this morning. The headline reads that the barometer has “risen significantly”. According to ifo, it is based on around 9,000 monthly reports from companies in manufacturing, construction, wholesale and retail trade and the service sector. The companies are asked to report their employment plans for the next three months.
Recovery in the employment market? It doesn’t really look that great
This shows that German companies should no longer be quite so pessimistic about employment. The ifo employment barometer rose to 92.3 points in June, up from 88.3 points in May. Nevertheless, employees are being laid off. However, the negative momentum of the previous months could be slowed down somewhat. According to ifo, the barometer rose in all four sectors, in some cases strongly. But stop. Here we would like to point out that the manufacturing sector does not make a good impression. This is shown in the second chart on the upper left for this sector! At -26.2, the barometer value for the manufacturing sector remains almost as low as the previous month’s -29.2. Here are further statements from ifo in the wording:
Once again, the most significant increase was in the service sector. Here, the number of employees will tend to remain constant. The same applies to the construction sector. In industry, the signs continue to point to lay-offs. This applies to many key sectors such as the automotive industry, electrical engineering and mechanical engineering. The retail sector has also not yet fully recovered from the closure. Here, too, the number of employees will continue to decline.