BERLIN, Dec. 19 (Xinhua) -- Companies in Germany are scaling back workforce plans in response to a stagnant economy and sluggish demand across most sectors, according to a monthly survey released Thursday by the ifo Institute for Economic Research.

The survey revealed that the employment sentiment barometer dropped to 92.4 points in December, down from 93.3 in the previous month. Among the four sub-sectors analyzed, manufacturing and trade indicators remained at subdued levels, while services and construction also reported negative readings.

"Fewer companies are expanding their workforce," said Klaus Wohlrabe, head of surveys at the Munich-based think tank. Layoffs are being considered particularly in almost all manufacturing sectors, with the metal and automotive industries among the hardest hit.

A separate annual report on skilled workers, released Thursday by the German Chamber of Commerce and Industry (DIHK), echoed similar concerns. The report noted that economic weakness in Germany is driving down demand for staff among the 23,000 companies surveyed, raising the risk of rising unemployment.

Despite this, 43 percent of firms reported experiencing a shortage of skilled workers, even as the pool of potential jobless individuals grows. "Companies looking to hire are prioritizing qualified candidates over those merely available," the report highlighted, describing this issue as a "mismatch problem."

High energy costs, economic policy uncertainties affecting investment decisions, and intense international competition continue to pose major challenges for companies in the Europe's largest economy, which have in turn dampened the demand for labors. These structural problems, combined with the skilled worker shortage, act as a "double brake on growth," DIHK deputy managing director Achim Dercks said. Enditem

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