German Labor Market Faces New Low as Industrial Job Cuts Persist

The Ifo Employment Barometer falls to its second-lowest level since the pandemic, with unemployment expected to rise and major industrial firms announcing layoffs.

The Ifo Employment Barometer dropped to 92.7 points in March 2025, its second-lowest level since the COVID-19 pandemic, signaling ongoing job reductions.
Germany's industrial sector continues to see significant job cuts, with nearly two years of steady workforce reductions and a sectoral barometer of minus 21.7 points.
Major companies, including VW, Siemens, Bosch, Audi, and ZF Friedrichshafen, have recently announced large-scale layoffs, exacerbating labor market challenges.
While the Ifo Business Climate Index has improved for the third consecutive month, businesses remain skeptical due to sluggish order intake and weak demand, particularly in the industrial sector.
The construction sector remains stable with no significant employment changes, and the retail sector shows slight improvement despite ongoing job cuts in some areas.