The German employment institute Ifo’s employment barometer fell in July compared to the previous month, reflecting the stagnation in the country’s economic growth. The data, released this Wednesday, shows a reduction to 95.4 points, compared to 95.9 recorded in June.
According to the survey, conducted among German businesspeople, many companies are considering job cuts, particularly in industry and retail, as household spending is taking a toll. Employment in construction remains stable and in services there is still some expectation of new hires.
The German economy, seen as the engine of the Eurozone, contracted by 0.4% in the last quarter of 2023 and recovered in the first three months of 2024, but has since fallen again, shrinking by 0.1% between April and June, according to Eurostat.
And with the economy stagnating, “the willingness to hire new workers is decreasing,” said Klaus Wohlrabe, head of Ifo, in a commentary accompanying the publication of the survey’s findings. “Where there is a lack of demand, there is no need for additional staff.”
Source: www.jornaldenegocios.pt
