Labor market prospects deteriorate
The willingness of companies in Germany to hire new staff has continued to decline. The employment barometer of the Ifo Institute and the labor market barometer of the Nuremberg Institute for Employment Research (IAB) fell in November. "Although the employment agencies are not expecting a slump in employment, the rising trend in the number of unemployed has become firmly established for the time being," said IAB Division Director Enzo Weber.
"The lack of a firm foundation for the upswing is making companies hesitant to hire new staff," said Ifo survey manager Klaus Wohlrabe in Munich. "Many companies are still complaining about a lack of new orders."
The Ifo employment barometer fell to 95.9 points in November, down from 96.2 points in October. In the construction industry, it fell to its lowest level since 2010. "The housing crisis is now also making itself felt in personnel planning," explained the economic researchers. In industry, the barometer rose after seven consecutive declines, but is still in negative territory. This means that fewer employees are to be expected. This is particularly true for the energy-intensive sectors.
In trade, the Ifo Employment Barometer has improved slightly. However, retailers are still holding back on hiring new staff. There is still a slightly positive hiring trend among service providers, albeit somewhat less pronounced than in the previous month.
The IAB labor market barometer continued its downward trend and reached its lowest point of the year so far in November at 99.5 points. "The unemployment forecast component stagnated at 96.5 points and thus continues to offer a pessimistic outlook for the development of unemployment in the coming months," the IAB reported. The employment component fell by 0.2 points to 102.5 points. The employment outlook has therefore deteriorated slightly, but remains positive. "The labor market is holding up reasonably well, but things will only get better when the economy picks up again," said Weber.
In response to the deteriorating labor market prospects, the construction industry is experiencing a decrease in new orders, leading to hesitancy in hiring new staff and a drop in the Ifo employment barometer to its lowest level since 2010. Despite a slight improvement in trade's Ifo employment barometer, retailers are still reluctant to hire, indicating a continued caution in the labor market.
Source: www.dpa.com
