BERLIN, March 28 (Xinhua) -- German companies are more cautious about hiring new employees in March than in last months, the Ifo research institute reported on Wednesday.

According to the report, the Ifo employment barometer index fell to 112.4 points in March from 113.5 points in February.

The barometer declined in all four sectors including manufacturing, construction, service and wholesaling and retailing sectors, a statement by the Munich-based think tank read.

The service sector remains the strongest driver of recruitment, while the sharpest drop was seen in wholesaling and retailing sector, it added.

"The situation in the German labor market nevertheless remains positive," the report noted.

The Ifo Employment Barometer is based on about 9,500 monthly responses from businesses in manufacturing, construction, wholesaling, retailing and the service sectors. The surveyed companies are asked to report on their employment plans for the coming three months.