Economy: Institutes see bright spots in the job market
In most economic sectors, plans to cut jobs still predominate. However, there are increasing signs of improvement.
Germany's labor market shows signs of stabilization, with unemployment rates easing due to improved economic conditions. However, the Institute for Labor Market and Vocational Research (IAB) notes a negative trend in employment, citing a shortage of young personnel and a large number of baby boomers retiring. According to the Federal Statistical Office, 27% of all employed people in 2025 have foreign roots, with migrants making up a significant proportion of workers in certain professions, such as cooking (56%), food manufacturing (55%), and healthcare (33%).
The IAB and the Ifo Institute both report a cautious outlook, with the Ifo's employment barometer rising for the third consecutive month to 95.1 points, but still indicating that job cuts will continue in some sectors.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Business cycle: Ifo survey: Labour market stabilising handelsblatt.com
