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Germany – Labour demand slows, staffing firms affected

29 May 2013

Companies in Germany are showing greater degrees of caution as hiring activity continued to decline last month, according to the latest job index by the country’s federal employment agency. Demand for staff fell in May, following months of decline. This also impacted staffing companies.

The data signalled a looser labour market as demand for staff has slowed since the beginning of last year. “The falling dynamics mainly correlate to on-going international economic risks with companies showing more reluctance to recruit new hires than in 2010 or 2011,” the federal agency said.

Overall, hiring levels remain good, the agency added. But companies are taking longer to fill roles with the right staff. Demand for temporary agency workers remains particularly high with every third job advertised by staffing firms. But demand for agency workers is below last year’s, the agency said.

In other sectors, workers remained much in demand in the retail and wholesale industries, gastronomy, health and social care as well as the public sector.

The job index is based on job advertisements gathered by the federal employment agency. It is regarded as a major indicator of the job market and reflects nationwide demand for staff on a monthly basis.  


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