Ifo Employment Barometer - Results of the Ifo Business Survey for April 2013
Employment Barometer Falls
The Ifo Employment Barometer for German trade and industry, including the service sector, fell in April. German companies are very cautious about recruiting additional staff.
In manufacturing the index dropped significantly. Companies expressed far greater pessimism about recruiting new staff. The same picture also emerged in most sub-segments of manufacturing. Although the seasonally-adjusted index dropped in construction, a seasonal increase in the level of employment is likely due to the apparently very good order situation and improving weather conditions. Staffing plans in the service sector also remain growth-oriented. The index fell slightly in retailing, but edged upwards in wholesaling. However, there is still no clear development trend at either level of trade.
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. 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 Handelsblatt.