ISTANBUL

Despite signs of recovery in key economic indicators in Germany, companies are once again showing caution in their employment plans and a tendency to lay off workers.

The Munich-based Economic Research (Ifo) Institute published the results of its employment barometer for February on Wednesday.

According to the statement on the survey results, Germany's employment barometer, which stood at 93.4 points in January, fell to 93.1 points this month.

Layoffs continue to be a key issue, particularly in export-oriented industries.

Almost all sectors, especially the automotive industry, are aiming to reduce their workforce.

The employment barometer for the service sector fell back into negative territory in February.

However, there is still a demand for personnel in the fields of information technology services and legal and tax consulting.

While the trade sector plans to continue with fewer employees, there is an optimistic outlook for a slight increase in hiring in the construction sector.

Meanwhile, the recent positive developments in the German economy have not yet been reflected in the employment market.

The Business Climate Confidence Index, considered the most important leading indicator, rose above expectations in February, while industrial orders grew steadily for the last five months, reaching their highest level since October 2022.

On the other hand, the German economy grew by 0.3% in the last quarter of 2025.

Experts predict that growth will reach 1% in 2026, supported by increased public spending, particularly in defense.