German companies plan to recruit more employees in April after three consecutive decreases, the Ifo research institute reported on Wednesday.

According to the report, the Ifo employment barometer index rose to 108.1 points in April from 107.4 points in March.

The barometer increased in all four sectors including manufacturing, construction, distribution and service sectors, the Munich-based think tank said.

"The employment dynamic gained impetus," the report noted.

Ifo is one of Europe's leading research institutes. Its business climate index is considered among the most important barometers for German economy.