ifo Employment Barometer Falls Markedly (February 2020)
German companies have become notably more reticent about looking for new staff. The ifo Employment Barometer fell to 98.1 points in February after measuring 99.6 points in January. This is the largest decline since December 2008. The optimism that prevailed on the German labor market at the beginning of the year has evaporated.
While in January the service providers were driving the barometer, this month they were acting more as the brakes as the indicator fell to its lowest level in half a year. In manufacturing, too, the barometer pointed downwards in February, with the number of employees continuing to shrink. Despite a decline in the barometer, the construction industry is still hiring. Meanwhile, as in previous months, there is little movement in employment in trade.
