February 2026 presents HR professionals with a mixed picture: business sentiment brightens for the first time in months, while employee willingness to change jobs sinks to a historic low. Here's a roundup of the most important HR news of the month.
ifo Business Climate: First Signs of Recovery
Some welcome news at month's end: the ifo Business Climate Index rose in February to 88.6 points – up from 87.6 in January. This marks the highest level since August 2025 and is seen as the first signal of an economic upturn in Germany.
The details:
- Manufacturing: Improved assessment of current conditions, order books picking up, production plans revised upward
- Services sector: Business climate improves, particularly in terms of expectations
- Logistics: Business climate indicator rises significantly
- Construction: Continues its recovery – order situation improving, albeit slowly
What this means for HR: Cautious optimism is warranted. Companies that invest now in employer branding and employee development will be well positioned for the moderate recovery expected later in the year.
Job-Switching Willingness at Historic Low
A current long-term study by forsa, commissioned by XING, reveals that only 34% of employees in Germany are open to changing jobs – the lowest figure since the survey began in 2019. For comparison: in 2022 it was 39%, and in 2024 still 37%.
Key findings:
- Only 8% are actively looking for a new job – 26% are merely passively open to a change
- 58% of respondents prefer "safe and boring" over "exciting but risky"
- 84% are satisfied with their current position
- Yet the Gallup Engagement Index shows: only 9% have a strong emotional connection to their employer – the worst figure in over ten years
The paradox: employees stay – but without genuine enthusiasm. For HR, this points to a clear task: employee retention alone is not enough. Active engagement management is needed to turn mere presence into real motivation.
HiBob HR Health Check: HR Becomes Strategically More Important
The current "HR Health Check" study by HiBob reveals a positive development: HR departments in many German companies have evolved into a strategically relevant function. HR professionals are increasingly seen as a sparring partner for management – no longer just an administrative unit.
For SMEs, this means: professionalising HR not only increases internal influence, but also strengthens the company's profile as an attractive employer. Digital HR software and structured processes are key to getting there.
Labour Market: Demographic Tipping Point Reached
The Institute for Employment Research (IAB) forecasts that 2026 will see the first-ever decline in Germany's working-age population – by around 35,000 people. That may sound modest, but it marks a historic turning point: from here on, the available workforce in Germany shrinks year after year.
At the same time, the Federal Employment Agency reports 3.07 million unemployed in February, with an unemployment rate of 6.5%. The difficult economic environment is still preventing any meaningful recovery in the labour market.
What this means for HR: Competition for talent remains intense despite the weak economy. Active sourcing and long-term employee retention are becoming a strategic necessity – not just a nice-to-have.
EU Pay Transparency Directive: The Clock Is Ticking
Germany must transpose the EU Pay Transparency Directive into national law by 7 June 2026. A first draft was announced for early 2026. The implications for HR are significant:
- Reporting obligations will apply to companies with as few as 100 employees
- Employers must communicate starting salaries or salary ranges to applicants
- Employees will be able to request information on pay for comparable roles – broken down by gender
For SMEs with little experience of structured pay systems, the time to act is now.
Looking Ahead: What's Coming in March
- Post-election transition: The new federal government is taking shape – key labour market policy decisions are expected
- Collective bargaining: Several sectors are in active negotiation rounds
- Working time recording: The legal framework for mandator