Frankfurt am Main – September 11, 2026 -- German employers' net employment outlook rose nine percentage points to 15% for the fourth quarter of 2026, marking the sharpest quarterly increase of the year and ending two consecutive quarters of decline, according to ManpowerGroup's latest labor market barometer.
Fewer companies plan job cuts, driving the rebound
The improvement stems primarily from a drop in firms planning workforce reductions, down to 17% from 24% in the prior quarter. Some 33% of employers intend to add staff, while 47% plan to keep headcount stable. Despite the gain, the outlook remains two points below the year-ago level and well under the global average of 29% and the European average of 20%.
Information & Communication leads all nine sectors at 23%
Seven of nine tracked sectors improved quarter-on-quarter. Information & Communication posted the strongest outlook at 23%, up nine points from the previous quarter and four points year-on-year. Manufacturing delivered the sharpest turnaround, climbing 19 points to 7% after a negative reading in the third quarter, returning to year-ago levels. A special breakdown for Technology & IT Services showed an even steeper recovery, jumping from 5% to 27%.
Domestic-facing sectors provide additional support
Public Sector, Health & Social Services rose 12 points to 19%. Trade & Logistics gained 13 points to reach 20%, while Hospitality climbed 17 points to 22%.
Construction outlook falls despite €500 billion infrastructure fund
Construction & Real Estate moved against the trend, dropping five points to 18% even as Germany's €500 billion infrastructure special fund remains available. The sector still stands nine points above year-ago levels. Finance & Insurance (15%) and Professional, Scientific & Technical Services (11%) each improved quarter-on-quarter but fell sharply year-on-year, down 17 and 19 points respectively. Utilities & Natural Resources posted the weakest outlook at 3%, a 14-point annual decline.
Berlin and Munich outpace industrial regions
Berlin led regional results at 28%, up 15 points, while Munich rebounded 21 points to 22%, recovering from a summer slump. Germany's north rose to 17% (+10 points). The industrially oriented south reached only 8% despite a strong quarterly gain, sitting nine points below last year, while the west was nearly flat at 15% (+1 point).
Executive says hiring signals may precede hard economic data
"Hiring intentions are sending an early signal of a possible turning point in the labor market," said Faris Becirovic, Country Manager and Chairman of the Management Board at ManpowerGroup Germany, noting that broader economic recovery remains only tentatively visible.
The survey polled 1,050 companies across Germany and was completed on July 31, 2026. The next barometer, covering Q1 2027 expectations, will be published in December 2026.