Companies in Germany are more cautious when it comes to personnel planning, according to research published on Monday.

The employment barometer compiled by the Ifo Institute, a leading German economic research body, fell by 0.3 points to 93.7 points in October, the lowest since July 2020.

"The situation on the labour market has been deteriorating for months, not sharply but continuously," says Klaus Wohlrabe, head of Ifo surveys. "Companies are tending not to refill positions rather than lay off employees."

The Munich-based economic researchers survey 9,500 companies every month to determine whether their workforce is expected to grow, remain the same, or shrink over the next three months.

The survey found industrial and commercial companies are mostly planning to cut jobs, while service providers and the construction industry are planning to keep employment figures constant. The tourism and IT sectors are looking to hire new employees.