Ifo Employment Barometer - Results of the Ifo Business Survey for April 2014
German Companies Continue to Recruit
German companies are continuing to recruit staff, according to the results of the Ifo Employment Barometer for German industry. The index remained unchanged in April at a level of 107.4 points, announced the Munich-based Ifo Institute on Monday. The recruitment dynamic was particularly strong in the service sector. Other branches were slightly more cautious about hiring new staff. The Ifo Employment Barometer is calculated for the German newspaper Handelsblatt. The German Federal Employment Agency will release its unemployment figures on Wednesday.
Companies in the distribution sector remain fairly keen to hire staff. In manufacturing, by contrast, the Ifo Employment Barometer fell for the third month in succession. Thanks to a positive business outlook, however, various segments, like the capital goods sector, still intend to hire additional staff. Construction was the only sector in which the employment barometer fell considerably. The early upturn due to this year’s mild winter is losing momentum.
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.