BERLIN (Reuters) - Employment agencies are increasingly upbeat about the German labour market despite the challenging economic environment, according to a survey by the Institute for Employment Research (IAB) published on Monday.
The IAB Labour Market Barometer for Germany recorded its fourth consecutive increase, rising by 0.4 points to 103.3 in February.
The employment component of the labour market barometer increased slightly by 0.1 points in February. This puts it at 104.9 points, which continues to signal strong employment growth, according to the research institute of the federal employment agency.
"The labour market outlook in Germany continues to brighten," said Enzo Weber, head of forecasts at the IAB.
The monthly leading indicator is based on a survey of employment agencies. "The employment agencies are increasingly optimistic about the future," Weber said.
A reading above the neutral mark of 100 points to improvements in the German labour market.
The unemployment forecast component rose significantly by 0.8 points to 101.8, signalling a decline in unemployment.
Due to the registration of Ukrainian refugees, unemployment temporarily increased last year, but with their gradual integration into work, unemployment is now declining, Weber said.
The gap between the two components has thus narrowed from 8 points in June 2022 to 3.1 points in February 2023, showing positive developments in both components.
The European Labour Market Barometer also rose, standing at 101.1 points in February, 0.6 points higher than in January.
"The prospects for the European labour markets have clearly improved since the beginning of the year," he said, as this was the second consecutive rise of the European index.