German Companies Plan Fewer Job Cuts

German job cuts slowed in August as the Ifo employment barometer rose to 94.8 points, its highest level since May 2025. The nascent economic recovery shows signs of a positive impact on the labor market.

The skyline of the banking district is seen during sunset in Frankfurt, Germany, April 21, 2024. REUTERS/Kai Pfaffenbach

Germany companies plan fewer job cuts as the economic recovery takes hold, with the Ifo employment barometer rising 1.8 points to 94.8 points in August. The reading reached its highest level since May 2025, signaling a modest improvement in domestic labor market conditions. While staff reductions continue across most sectors, the slowdown offers investors early signs of stabilization.

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