Germany Jobs Outlook Weakens as Firms Cut Hiring

Germany faces a weakening labor market as businesses plan further job cuts, according to the Munich-based Ifo Institute.

The institute's employment barometer fell to 92.3 in June from 93.9 in May, reflecting continued weakness in hiring across the economy.

Klaus Wohlrabe, head of surveys at the Ifo Institute, said Germany remains far from achieving a sustained recovery in the labor market, with employment conditions under pressure in manufacturing, wholesale and retail trade, and the services sector, particularly tourism.

Germany's prolonged economic slowdown, which began after the COVID-19 pandemic and intensified following the loss of Russian gas supplies and geopolitical tensions in the Middle East, continues to weigh on businesses.

Separately, credit agency Creditreform reported that corporate insolvencies reached 13,000 in the first half of the year, the highest level since 2013, highlighting mounting financial pressure on German companies.