Survey by the Ifo Institute
Companies plan more short-time work and job cuts
The crisis is increasingly hitting the labor market. According to an Ifo survey, an important part of the German economy in particular is increasingly planning to cut jobs, while short-time working is on the rise.
The outlook for the German labor market is getting worse and worse. In November, the employment barometer compiled by the Munich-based Ifo Institute fell to its lowest level since summer 2020, according to the economic researchers. The monthly decline was rather small at 0.2 points to 93.4, but it was the sixth drop in a row. "More and more companies are stopping hiring," says Klaus Wohlrabe, head of the Ifo surveys. "They are also increasingly discussing job cuts."
According to the survey, the situation is particularly bad in the manufacturing sector. "Industry is trying to counter the crisis with a mixture of short-time working and job cuts," says Wohlrabe. According to Ifo, industrial companies in particular are increasingly planning to reduce their workforces, but the same applies to the retail sector. In the service sector, a constant development is now expected after a long period of job creation. There is little movement in the construction sector.
In industry, Ifo also sees signs of a further increase in short-time working. In November, 17.8% of the companies surveyed used short-time working, compared to 14.3% in August. For the next three months, 28% expect this - compared to 23% in August. Although the figures for this expectation are generally higher than the short-time work that is subsequently implemented, the significant increase in expectations is a clear negative signal for the labor market.
Compared to Corona, short-time work is still low
Compared to past crises, short-time work is still low, as the Ifo emphasizes. In spring 2000, at the height of the coronavirus pandemic, 59% of industrial companies used this instrument, according to Ifo surveys. Currently, the figures are particularly high among companies in the metal production sector at 41.7%, followed by furniture manufacturers at 33.7% and the automotive industry at 27.2%. The chemical industry is still hardly affected.
The percentages relate to the proportion of companies that are on short-time working. This often only affects part of the workforce. The proportion of employees on short-time working is therefore generally much lower.
You might also be interested in
Igus training factory to end shortage of skilled workers
Igus is increasingly training junior staff itself. A new training factory at the company headquarters in Cologne-Porz will support this. The company aims to no longer be reliant on external specialists by 2027.
read more...IfW, DIW, IWH, RWI and Ifo Institute
Economic researchers lower their growth forecasts further
The leading German economic institutes see hardly any growth impetus for 2025, but instead rising unemployment figures and persistent weaknesses in the location. According to experts, only a stable government with a clear economic policy strategy...
read more...Exports shrink - exports to the USA collapse
The headwind for Germany's exporters on the global markets remains strong. In October, they had to cope with sharp declines - especially in their most important sales market, the USA.
read more...Incoming orders fall more moderately than expected
According to the Federal Statistical Office, German industry recorded a slight decline in orders of 1.5 percent in October, but positive revisions for the previous month and surprisingly strong annual figures are creating optimism.
read more...German companies' existential fears on the rise again
According to an Ifo survey, almost one in fourteen companies now sees its existence threatened. This is significantly more than recently - but the figures have already been much higher.
read more...Opinions on Germany's political future
Result of the reader survey on the break-up of the traffic light coalition
Last week, we conducted a survey among our readers on the dissolution of the traffic light coalition and a possible reorientation of German politics. The results indicate a clear preference for new elections and reveal a mixture of optimism and...
read more...Ifo: Lack of orders rises to highest level since 2009
The German economy is suffering more and more from a lack of orders. A regular survey shows worse figures than during the coronavirus crisis.
read more...Growth forecast of the ifo Institute
German economy stuck in the doldrums
The ifo Institute has lowered its growth forecast for the current year. It now expects zero growth instead of the previous forecast of 0.4%. The institute has also lowered its estimate for the coming year to 0.9 percent instead of 1.5 percent. The...
read more...Survey: majority worried about the consequences of AI
Artificial intelligence is seen as a revolution in the world of work; according to the ifo Institute, the proportion of companies using AI has doubled to 27% compared to the previous year. However, an Allianz survey also shows that many people are...
read more...