Ifo Employment Barometer - Results of the Ifo Business Survey for November 2012
Employment Barometer Rises
The Ifo Employment Barometer for German industry and trade rose significantly in November, marking the largest increase since October 2010. Firms were significantly less pessimistic about recruiting additional staff.
In manufacturing the employment barometer rose after four successive decreases. This positive development emerged in almost all industrial sectors. In construction employment expectations brightened considerably and companies plan to recruit additional staff. At the two levels of trade there was a switch in last month’s trends. After an increase in October the employment barometer in retailing sank in November. In wholesaling, on the other hand, willingness to recruit additional staff increased, following a slight decrease last month.
The Ifo Employment Barometer is based on ca. 7,000 monthly responses from businesses in manufacturing, construction, wholesaling and retailing. The companies are asked to report on their employment plans for the coming three months. They can describe their plans for the number of employees for the coming six months as “increasing”, “stable”, or “decreasing”. The balance value of the plans is the difference in the percentage shares of the responses “increasing” and “decreasing”. To calculate the index value the balances are normed to the average for the year 2005.
The Ifo Employment Barometer is calculated exclusively for the Financial Times Deutschland.