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Germany – Companies set to hire more workers

29 October 2014

Following months of caution, companies across Germany signalled an improving hiring sentiment during October, according to the latest Employment Barometer from the Institute for Economic Research (Ifo).

The index rose to 107 in October, up from 106.1 in September, and up from 106.1 in October 2013.

The index is used as an indicator of the level of recruitment activity in comparison with the base index of 100 established in 2005.

The main driver for growth was the services sector, which seems relatively immune to current economic concerns. Companies in the services sector are the most willing to recruit new staff, with the employment barometer in that sector at its highest point for nearly two years. 

After a return to growth in September, following three months of decline, the manufacturing sector dipped sharply again in October; hitting its lowest index level since October 2012. Although recruitment in the retail and wholesale sector exceeded expectations, recruitment activity remained subdued. Increased recruitment, however, is expected in the construction sector.