Germany's ifo employment barometer rose slightly to 95.1 points in September 2026.

The ifo Institute reports a slight increase in its employment barometer, from 94.8 to 95.1 points in September 2026. Survey head Klaus Wohlrabe says the labor market is stabilizing, while industry and retail keep cutting jobs.

The ifo employment barometer rose from 94.8 to 95.1 points in September 2026. In manufacturing, most companies still plan to cut staff, with hiring limited to the food industry and makers of data processing, electronic and optical equipment. Among service providers, hiring and cutting plans are roughly balanced, with extra staff sought mainly by engineering firms, legal and tax advisers, and auditors. Temp staffing agencies also show renewed optimism. Retail plans continue to lean toward job cuts, while construction employment is expected to stay largely stable.

According to ifo survey head Klaus Wohlrabe, the slight rise points to a stabilizing labor market rather than a turnaround. For HR planners, that means conditions vary sharply by sector: while industry and retail keep shedding jobs, some service segments such as engineering, law and tax advisory are adding positions. Companies hiring in these growing segments meet a labor market that is still tight overall but already offers local room to recruit. The renewed confidence among temp staffing firms can also serve as an early signal for a broader recovery in hiring demand.

Whether the slight improvement continues in coming months, or reflects only short-term noise, remains open. Wohlrabe himself stresses that a genuine recovery is not yet in sight. For companies in industry and retail, the question is how much longer job cuts will continue, and whether the stabilization spreads to other sectors.

This story was produced automatically from the source named above and checked by software before publication. The image is symbolic and shows neither the event nor a real person. How this paper is made