The minimal increase in the workforce in Germany was observed.
Despite constant financial plateau, job development in Germany is barely ticking upward. In July, around 46.0 million individuals living in Germany held jobs, as reported by the Federal Statistical Office last Friday. This figure showed a minor increase of 5,000 after adjusting for seasonal fluctuations, compared to the previous month. June saw an increase of 9,000, while there was an uptick of 21,000 in May.
Unadjusted for seasonal changes, the workforce count saw a decrease of 47,000 or 0.1% contrasting June, marking the third consecutive decrease in July. This trend began in 2017, as the statistical analysts noted, with employment always growing compared to the preceding July for five straight years.
In comparison to July 2023, the workforce count saw a surge of 165,000 or 0.4%. From February to June 2024, there was also a steady 0.4% increase in employment each month. The labor market's long-term favorable tendency, thus, continues to persist, as mentioned by the analysts.
In the face of prolonged financial stagnation, German businesses are more cautious than ever before when it comes to their staffing plans, with the employment barometer dropping to 94.8 points in August, down from 95.3 points in July. This is the third consecutive drop and marks the lowest level since February 2021. The Ifo Institute, located in Munich, conducted a survey of thousands of businesses, explaining the weak economic growth's impact on job development. "Companies are struggling due to a lack of orders, making them reluctant to hire new employees," said Klaus Wohlrabe, Ifo survey director.
The economic slowdown seems to be influencing German businesses, as they become more cautious about their staffing plans, with the employment barometer dropping for three consecutive months. This downturn is reflected in the Ifo Institute's survey, where businesses cited a lack of orders as the reason for their reluctance to hire new employees.
Due to this economic slowdown, the minor job development in Germany might not continue at its current pace, as cautious businesses may slow down their hiring processes.
