Germanys skills shortage reached record level in 2022

According to a study, more than 600,000 positions could not be filled in 2022. In some areas, there was a shortage of qualified staff for nine out of ten positions.

The shortage of skilled workers in Germany reached a new record level in 2022, according to a study, despite the strains on the economy caused by the Ukraine war and high inflation. In arithmetical terms, more than 630,000 vacancies for skilled workers could not have been filled last year because there were no suitably qualified unemployed people available nationwide, reported the Competence Center for Securing Skilled Labor (Kofa) of the employer-affiliated Institute of the German Economy (IW).

This was the largest gap in skilled labor since the start of the observation period in 2010.

According to the study, the bottlenecks were particularly pronounced in the areas of health, social services, teaching and education, as well as in construction, architecture, surveying and building technology, where arithmetically six out of ten vacancies could not be filled. However, the shortage of skilled workers was also above average in the fields of natural sciences, geography and computer science.

In some areas, nine out of ten positions remain vacant

The shortage of skilled workers almost tripled last year in the occupational areas of commercial services, goods trade, sales, hotel and tourism. In this area, a good three out of ten vacancies could not be filled. However, the sharp increase in this area can also be explained by a catch-up effect following the sharp downturn in the wake of the Corona pandemic.

According to the survey, the general rule on the labor market is that the higher the qualification required, the more difficult it is to fill vacancies. Experts with university degrees were particularly in demand in the fields of IT, electrical engineering, construction planning and supervision. According to the study, there was a shortage of suitably qualified unemployed people for nine out of ten vacancies.

Source: Zeit Online – 16.04.2023

Germany’s skills shortage reaches record level in 2022

Germany has been facing a skills shortage at a record level in recent years. The shortage is particularly acute in certain sectors such as IT, engineering, healthcare, and skilled trades.

The reasons for the skills shortage in Germany are complex and multifaceted. One reason is demographic changes, as the population is aging and there are fewer young people entering the workforce. Another reason is the increasing demand for highly skilled workers due to digitalization and the shift towards a knowledge-based economy.

To address the skills shortage, Germany has implemented various measures, including:

1. Promoting vocational education and training: Germany has a strong vocational education and training system, which provides practical, job-specific training for young people. The government has been working to promote this system and encourage more young people to pursue vocational training.
2. Encouraging immigration: Germany has been actively recruiting skilled workers from other countries, particularly in the IT and healthcare sectors. The new points-based immigration system that was introduced in 2020 is one example of this effort.
3. Offering incentives for workers: To attract and retain skilled workers, many German companies are offering competitive salaries, flexible working hours, and other incentives.
4. Upskilling existing workers: German companies are investing in training and upskilling their existing workforce to meet the demands of the digital economy.

Overall, the skills shortage in Germany is a complex issue that requires a multifaceted approach. The government and businesses are working together to address the issue and ensure that the country has the skilled workforce it needs to remain competitive in the global economy.

The skills shortage in Germany is likely to have significant implications for the country’s future. Without enough skilled workers, Germany may struggle to maintain its position as a leading global economy and to compete with other countries in the knowledge-based sectors that are increasingly important to economic growth. Some of the potential implications of the skills shortage include:

1. Slowdown in economic growth: The shortage of skilled workers could lead to a slowdown in economic growth, as companies struggle to fill critical roles and pursue new business opportunities.
2. Impact on innovation: A lack of skilled workers could also limit innovation in key sectors such as technology, healthcare, and engineering, where new ideas and expertise are crucial to maintaining competitiveness.
3. Pressure on existing workers: If companies are unable to fill critical roles, existing workers may have to take on additional responsibilities, leading to burnout and high turnover rates.
4. Need for immigration: Germany may need to continue to attract skilled workers from other countries to fill critical roles and maintain its economic growth.

Overall, addressing the skills shortage will be a key challenge for Germany in the coming years, and will require a multifaceted approach that involves investing in education and training, encouraging immigration, and promoting innovation and competitiveness in key sectors.

Germany has been taking several steps to address the skills shortage, including:

1. Encouraging vocational education and training: Germany has a strong vocational education and training (VET) system that provides practical, job-specific training for young people. The government has been promoting this system to encourage more young people to pursue vocational training, and has been working to make it more attractive by offering various incentives.
2. Improving the immigration system: Germany has been actively recruiting skilled workers from other countries, particularly in the IT and healthcare sectors. The introduction of a new points-based immigration system in 2020 is one example of this effort, which aims to attract more skilled workers from abroad.
3. Upskilling the existing workforce: Companies in Germany are investing in training and upskilling their existing workforce to fill critical skills gaps and to adapt to the changing demands of the digital economy.
4. Supporting research and development: The government has been investing in research and development in key sectors such as engineering, healthcare, and technology, to promote innovation and to develop new skills and expertise.

Overall, Germany’s approach to addressing the skills shortage is multifaceted and involves a combination of measures that aim to strengthen the education and training system, attract skilled workers from abroad, and invest in the existing workforce. By taking these steps, Germany hopes to ensure that it has the skilled workforce it needs to remain competitive and to maintain its position as a leading global economy.