German companies to cut jobs as labor market weakens
German companies remain cautious about hiring and are continuing to reduce their workforce, according to the latest data from the ifo Institute, Qazinform News Agency correspondent reports.
The ifo Employment Barometer is based on ca. 9,500 monthly responses from businesses in manufacturing, construction, wholesaling, retailing and the services sector. The companies are asked to report on their employment plans for the coming three months.
“In 2025, we saw gradual job cuts, especially in industry. The weak economy continues to slow down the labor market,” said Klaus Wohlrabe, Head of Surveys at the ifo Institute.
Job reductions are most pronounced in the industrial sector, where almost all branches plan further cuts. The clothing industry stands out in particular, with manufacturers indicating a strong intention to reduce staff. Service providers are also holding back on recruitment, as reflected in another decline in the sector’s employment expectations.
A similar trend is evident in the trade sector, where companies are planning to employ fewer workers in the new year. By contrast, the construction industry presents a more balanced picture. Positive and negative employment expectations currently offset each other, and construction companies largely plan to keep their workforce unchanged.
More optimistic outlooks are seen in selected service areas. Companies in the tourism industry, as well as management consultancies, expect to expand their staff levels in the coming year.
Earlier, Qazinform News Agency reported that Germany launched pension accounts for children.
