Ifo Employment Barometer - Results of the Ifo Business Survey for May 2014
German Companies More Cautious About Recruiting
The Ifo Employment Barometer for German industry, including the service sector, fell to 106.9 points in May from 107.4 points in the previous month. The overall number of staff employed, however, will continue to rise, albeit more slowly. Willingness to recruit staff remains highest in the service sector.
In manufacturing the employment barometer remained unchanged. Manufacturers are still cautious about recruiting new staff. In construction the employment barometer continued to fall. No upturn in recruitment is expected in this sector in the near future. Although the barometer fell slightly in wholesaling, willingness to recruit new staff remained somewhat positive. There were no changes to expansive personnel plans in the service sector.
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.