Companies in Germany are more reluctant to hire new staff in 2024, when compared to 2023, according to the latest study by the ifo Institute for Economic Research.

Klaus Wohlrabe, Deputy Director of the ifo Center for macroeconomics and surveys and head of surveys, said the difficult economic situation is now also being reflected in personnel planning.

The ifo Employment Barometer fell to 95.5 points in January, down from 96.5 points in December. The Barometer is based on surveys of business leaders.

Across industries, companies are thinking of laying off staff because customers are staying away.

Manufacturers are still assuming that their headcount will decline, while the services sector plans to hire less staff. Despite the expected decrease in hiring, recruiting is still set to be net positive in 2024.

Meanwhile, news agency dpa International Service reports that German employers have widely complained of staffing shortages and difficulty in finding skilled workers. But the country's economy has also been mired in difficulty, and tipped into recession in 2023 after gross domestic product (GDP) shrank over the full year.