German Companies Plan Job Cuts Amid Economic Challenges

The Ifo Employment Barometer falls to its lowest point since 2020, reflecting ongoing economic strain and structural changes across industries.

The Ifo Employment Barometer dropped to 93.0 points in February, down from 93.4 in January, continuing a nearly three-year downward trend.
This is the lowest level for the barometer since the early months of the COVID-19 pandemic in 2020, highlighting persistent economic difficulties.
Job cuts are being planned across all major economic sectors, including industry, services, trade, and construction, with industry and trade seeing the largest reductions.
Structural changes in the economy, alongside weak economic conditions, are cited as key drivers of the decline in employment prospects.
Germany's unemployment rate has reached its highest level in nearly a decade, with almost three million unemployed and significant reliance on short-time work benefits.