- German companies are planning significant job cuts due to the global crisis.
- Geopolitical uncertainty and conflict in the Middle East are hampering companies’ personnel planning.
- Almost all industries in Germany face layoffs until uncertainty eases.
German companies plan to cut more jobs due to global crises. The employment index compiled by the Ifo economic institute fell by more than two points in March to the lowest level in almost six years. TASR informs about it based on the report of the DPA agency. “Geopolitical Uncertainty Affects Companies’ Staffing Planning,” said Klaus Wohlrabe, head of surveys at Ifo.
“More jobs are being eliminated than are being created,” he added. The world economy is particularly burdened by the unresolved conflict in the Middle East. The Strait of Hormuz, which is crucial to the world’s oil trade, remains almost completely blocked, causing a sharp increase in oil prices and disruption of supply chains.
Almost no industry will avoid layoffs, the Munich institute warned. Its employment index for the services sector fell to its lowest level since the start of the novel coronavirus pandemic. “Sustained improvement in the labor market can only be expected when uncertainty is significantly reduced,” noted Wohlrabe.
