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German Labor Barometer Slips to 99.4, Flagging Near-Term Weakness

The reading reflects expectations gathered after the Iran war plus an oil-price shock.

Overview

  • The IAB index, an early gauge from Germany’s job centers, fell for a fourth straight month to 99.4, below the neutral 100 mark.
  • IAB economist Enzo Weber said unemployment will keep rising in the next few months, while overall employment stays largely flat.
  • The survey asks all local employment agencies about the next three months, which makes the index a forward look at hiring and layoffs.
  • The researchers still expect a recovery in the second half of 2026, though they see no near-term signs of relief.
  • Weber said labor prospects across Europe are also stuck, reflecting the drag from the conflict in Iran and higher oil costs.