German Companies Increase Plans for Job Cuts and Short-Time Work

A survey by the Ifo Institute reveals worsening employment prospects, with industrial firms leading in workforce reductions and expanded short-time work plans.

The Ifo Institute's employment barometer fell to 93.4 points in November, marking its lowest level since July 2020 and the sixth consecutive monthly decline.
Industrial companies are particularly affected, with many turning to a combination of workforce reductions and short-time work to manage the economic downturn.
Short-time work usage in the industrial sector has risen from 14.3% of firms in August to 17.8% in November, with 28% expecting to implement it in the next three months.
Key industries relying on short-time work include metal production (41.7%), furniture manufacturing (33.7%), and the automotive sector (27.2%), while the chemical industry remains largely unaffected.
The service sector, after a period of job growth, now anticipates stable employment levels, and the construction industry reports minimal changes in workforce planning.