The Institute for Economic Research (Ifo) published its Employment Barometer results for August.

The Employment Barometer, which stood at 93 points in July, rose by 1.8 points to 94.8 points in August. This level was recorded as the highest value since May 2025.

The trend of staff reduction in the industrial sector slowed down. The employment barometer in the sector reached its highest level since March 2024.

The Ifo Institute stated that contraction plans still predominated in most individual sectors. It was noted that data processing equipment, electronics and optical product manufacturers, and the food sector stood out positively, with employment growth expected in these areas.

In the trade sector, however, despite the improvement in the barometer, staff reduction plans continue to dominate in both wholesale and retail trade.

In the service and construction sectors, layoff and new employment plans were balanced, and the general goal was reported to be maintaining the current employment level.

Timo Wollmershauser, Head of Ifo Surveys and Economic Forecasts, stated in his assessment of the data, "The labor market is showing a slight upward trend, but looking at the overall picture, the decline in employment has not yet completely stopped."