Germany’s IFO sees widespread layoffs in coronavirus crisis

Dhwani Mehta FXStreet

The findings of the latest survey conducted by Germany’s influential IFO institute showed on Monday that a majority of the sectors cut jobs last month, in the face of the coronavirus pandemic induced lockdown and stall in the business activity.

Key points

39% of German companies in the auto industry decided to cut jobs in April.

50% of companies in hotels, 58% in restaurants business, 43% in travel agencies decided to cut jobs last month.

Higher than average layoffs were also being made in many other sectors but none in pharmaceuticals.

Klaus Wohlrabe, Head of surveys, noted: "From now on, the crisis will have an impact on the German labor market."

EUR/USD unfazed

The shared currency is little change despite the downbeat survey findings, as EUR/USD defends bids around 1.0845 ahead of the European open.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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