BERLIN (Reuters) – Companies in Germany, Europe’s largest economy, are looking to hire more staff, with a particular rise in demand in the service sector, the Ifo economic institute said on Thursday.

Ifo said its employment barometer rose to 99.6 points in November from 97.8 points in October.

“Against the backdrop of decreasing uncertainty, the number of employees in Germany could continue to rise. However, the shortage of skilled workers will remain a lasting problem,” it added.

In manufacturing, the ifo Employment Barometer rose slightly for the first time after falling for five straight months. The indicator for the service sector increased significantly.