NUREMBERG (Dow Jones)–The IAB labor market barometer rose for the second time in a row in January. The leading indicator from the Institute for Labor Market and Occupational Research (IAB) climbed by 0.2 points to 100.3 points in January. It is therefore above the neutral value of 100 points. The European Labor Market Barometer remained unchanged at 99.3 points in January.
Both components of the IAB labor market barometer increased in January. The component predicting employment is at 103.1 points, after an increase of 0.2 points. “The employment agencies expect that employment development will pick up again after a lull,” said Enzo Weber, head of the IAB research department.
The outlook for unemployment remains negative, although the component predicting unemployment rose slightly by 0.2 points to 97.4 points compared to the previous month. “The job opportunities of the unemployed must be increased again, otherwise there is a risk of further consolidation,” explained Weber.
The European Labor Market Barometer remained unchanged in January compared to the previous month. At 99.3 points it is still in slightly negative territory. “There has been no further decline in the labor market outlook. However, the European Labor Market Services do not yet see a recovery from the economic downturn,” said Weber.
The IAB labor market barometer and the European Labor Market Barometer are leading indicators. The scale of the IAB labor market barometer ranges from 90 (very poor development) to 110 (very good development).
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(END) Dow Jones Newswires
January 29, 2024 05:02 ET (10:02 GMT)