By Maria Martinez

German companies are becoming more reluctant to hire new staff, the Ifo Institute said Tuesday.

The Ifo employment barometer has fallen to 103.3 points in June from 104.0 points in May.

However, demand for labor remains high and the shortage of skilled workers is still a key problem for German companies, Ifo said in a note.

In manufacturing, the employment barometer fell slightly, Ifo's data showed. While the electrical and electronics industry is still looking to hire new staff, the chemical industry has stopped hiring for the time being.

Among service providers, the indicator also fell, although demand for new staff remains high across many industries.

Trade and construction companies aren't planning to hire new staff, Ifo said.

Write to Maria Martinez at maria.martinez@wsj.com

(END) Dow Jones Newswires

June 28, 2022 03:15 ET (07:15 GMT)