German Ifo Institute: "18% of Companies Reduced Staff Last Month... 58% in the Food Service Industry"

[Asia Economy Reporter Ki-min Lee] Due to the spread of the novel coronavirus infection (COVID-19), 18% of German companies reduced their workforce last month, the German Ifo Institute for Economic Research announced on the 11th (local time).

The service industries such as dining, accommodation, and travel were hit the hardest. According to the institute, 58% of dining businesses, 50% of hotels, and 43% of travel agencies either laid off employees or decided not to renew contracts.

In Germany's largest industry, the automobile sector, 39% of companies implemented workforce reductions. Additionally, 48% of leather goods and footwear manufacturers and 30% of metal product manufacturers reduced jobs.

On the other hand, only about 5% of law firms and accounting and tax firms reduced jobs, and only 3% of companies in the construction industry cut their workforce. No companies in the pharmaceutical sector reduced jobs.

By region, 22% and 20% of companies in Baden-W?rttemberg and Bayern respectively reduced jobs, showing the highest proportion of companies reducing workforce among the 16 federal states.

In Saarland and Rheinland-Pfalz, only 11% of companies reduced their workforce respectively.

This content was produced with the assistance of AI translation services.