German Job Cuts Slow as Economic Recovery Lifts Labour Market, Ifo Says
By Maria Martinez
Germany's Labour Market Trends and Economic Indicators
BERLIN, Aug 27 (Reuters) - Germany's nascent economic recovery is beginning to have a positive impact on the labour market, with job cuts slowing in August, according to a survey by the Ifo economic institute.
Ifo Employment Barometer and Labour Market Outlook
The Ifo employment barometer rose by 1.8 points to 94.8 points in August, the institute said on Thursday, reaching its highest level since May 2025.
Expert Commentary
"The labour market is showing a slight upward trend," said Ifo's Timo Wollmershaeuser. "Overall, however, jobs are still being cut."
Hope for Industry
HOPE FOR INDUSTRY
Business Climate and Sector Performance
The Ifo business climate index rose more than expected in August, data showed on Tuesday, following a stronger-than-expected rise in investor morale as well as stronger exports and industrial production in June.
Manufacturing Sector Developments
In manufacturing, job cuts have lost momentum, with Ifo's employment barometer climbing to its highest level since March 2024.
Sector-Specific Trends
Although the majority of sectors continue to focus on cuts, positive exceptions are manufacturers of data processing equipment, electronic and optical products, as well as the food industry.
Trade, Construction, and Services Employment
Although the employment barometer improved in trade, plans to cut staff continue to predominate, while in construction and services, the number of employees should remain constant.
Upcoming Labour Market Data
Labour market data for August will be released on Friday. Economists polled by Reuters expect the unemployment rate to remain unchanged at 6.4%.
(Reporting by Maria Martinez, Editing by Miranda Murray)