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German companies slightly more cautious in hiring staff

Christian Fernsby ▼ | December 21, 2019
German companies were slightly more cautious in hiring staff as the ifo employment barometer declined from 99.5 points in November to 98.9 points in December, the German ifo Institute announced.
Germany river cargo ship
German economy   Germany river cargo ship
"Nevertheless, the upswing in the labor market will continue," the Munich-based institute noted.

Topics: German hiring

The ifo employment barometer is based on around 9,000 monthly reports from company executives in German manufacturing, construction, wholesale as well as retail trade and the service sector.

German service providers were increasingly looking for new employees, albeit to a slightly lower extent than before. According to ifo, German logistics and IT companies had been "particularly important drivers" for this development.

At the same time, the employment index for Germany's important industry and car manufacturers continued to fall.

The German Association of the Automotive Industry (VDA) is expecting that the transition to electric drives would cost the German automotive industry tens of thousands of jobs.

Germany's booming construction sector, on the other hand, profited from the "continuing good order situation" which ensured a continuous increase in new hiring, according to ifo.

For 2020, the association of the German construction industry (ZDB) is expecting turnover in the construction industry to grow by 5.5 percent to 145 billion euros (161 billion U.S. dollars) while demand for skilled workers among construction companies would "remain high."