The Ifo Employment Barometer and the German Labour Market

The Ifo Employment Barometer and the IAB Labour Market barometer, both indicators for the German labour market, closely reflect the situation in that market. Yet there are differences between the two indicators when different target sizes are considered. The Ifo Employment barometer is most reliable when it comes to changes in employment, while the IAB labour market barometer shows the monthly dynamic in the number of persons registered as unemployed. Overall, the Ifo Employment Barometer proves more reliable if the focus is on economic decisions. Its weaknesses emerge, however, if the emphasis is on changes in legal framework conditions or survey implementation. The introduction of Hartz IV or seasonal short-time work payment (Saisonkurzarbeitergeld) in the construction sector pose special challenges for company surveys as a result.