According to the Ifo Institute, companies in Germany want to cut more jobs because of the global crises. The corresponding employment barometer fell by more than two points in March to its lowest value in almost six years, as the institute in Munich announced. “The geopolitical uncertainty is affecting companies’ personnel planning,” said the head of the Ifo surveys, Klaus Wohlrabe. “More jobs are being lost than created.”
In particular, the unresolved conflict in the Middle East is putting a significant strain on the global economy. There is no end in sight to the almost complete blockade of the Strait of Hormuz, which is central to oil supplies. As a result, energy prices have risen enormously and supply chains have been disrupted. The Institute for Labor Market and Occupational Research (IAB) had previously expressed pessimism.
Hardly any industry is spared from job losses, it said. The barometer for the labor market situation in industry has deteriorated, as has the wholesale and retail trade. For service providers, the corresponding indicator fell to its lowest level since the beginning of the Corona crisis.
Increased costs are causing problems for logistics. Jobs would also be cut in tourism. “Sustainable relaxation on the labor market can only be expected when the uncertainties subside significantly,” said Wohlrabe.