Institute: Outlook for the labor market slightly improved again
The labor market barometer rose by 0.4 points to 99.9 points in December and is currently only just below the neutral value of 100. The index is regarded as a leading indicator for the development of the labor market and is based on a monthly survey by the employment agencies. The scale ranges from 90 points for a very poor development to 110 points for a very good development. The barometer has been on a steady downward trend since April, but was still in positive territory for a long time. In September, the value then fell below 100.
The labor market barometer is made up of two components. The employment component rose by 0.3 points to 102.7 points in December - this suggests a continued moderate increase in employment, according to Weber from the IAB. The component predicting unemployment climbed by 0.5 points to 97.0 points. "This means that expectations for unemployment have improved, but remain clearly in negative territory."
Weber summarized: "The labour market is no longer the sure-fire success of previous years, but you can still rely on it even in an economic downturn." However, the economic turnaround requires not only a stable labor market, but also investment in transformation.
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- If the improved outlook for the labor market continues, individuals seeking employment might find it easier to secure jobs at the employment office.
- The recent improvement in the labor market outlook, as indicated by the IAB, could potentially attract more foreign investment in the institute sector.
- Despite the slightly improved outlook for the labor market, businesses may still be careful when making hiring decisions due to uncertainties in the broader economy.
- In light of the improved outlook for the labor market, certain industries may see a resurgence in demand for skilled labor, resulting in something akin to a talent war.
- The employment office might need to adapt its strategies to accommodate the potential influx of job seekers, should the labor market outlook continue to improve on the current trajectory.
Source: www.stern.de
