Germany’s skilled labour shortage puts vital industries at risk

9 months ago 31

A dire talent shortage is threatening the success of vital industries in Germany, according to an annual report from the Association of German Chambers of Industry and Commerce (DIHK), a business association.

Despite Germany’s economic stagnation, eight out of ten businesses looking to fill positions were struggling to do so, with critical shortages in future-oriented sectors, he said, citing areas such as net zero, digitalisation, electromobility, and healthcare.

“The skilled labour situation is highly critical, not just for affected enterprises but for our economic landscape overall,” Achim Dercks, the DIHK’s deputy chief executive, warned.

Last year, the German economy was short of some 600,000 workers, according to the German Economic Institute (IW) think tank – a shortage that is only likely to grow as Germany’s population ages.

An estimated 1.8 million positions remain vacant in the overall economy, resulting in a staggering loss of over €90 billion this year, equivalent to more than 2% of the GDP, Dercks claimed.

The organisation’s annual report on Germany’s talent situation is based on data from over 22,000 companies and reveals widespread concern among businesses.

The German government has been working on counteracting this trend as it passed liberalisations to its immigration law over the summer.

The legislation is supposed to lower requirements for companies to hire third-country nationals. It will also give job-seekers who have not secured a position yet the chance to look for a job in the country based on a Canada-style points system.

The corresponding regulations are being implemented, with the process scheduled to be completed in June 2024.

However, Germany faces significant challenges in recruiting foreign workers, mainly due to its complicated language, which Labour Minister Hubertus Heil (SPD/S&D) previously called a “competitive disadvantage”.

Dercks also called on lawmakers to provide intensified education and training, boost the employment of women and older individuals, and innovate work schedules and automation.

(Nick Alipour | Euractiv.de)