Germany is facing challenges in the labor market, including a shortage of skilled workers, rising unemployment and changes in the training market.

Demographic change

• Forecast shows stagnating overall population in Germany.
• Decline in the labor force (20-66 years) is expected.
• Deaths exceed births, difference continues to grow.

Job market and unemployment

• Unemployment figure rose to 2.61 million in 2023, forecast for 2024 shows further increase
• Unemployment rate is 6%, at pandemic level.
• Number of job vacancies fell by 10.3% in the first quarter of 2024

Vocational training market

• Number of students remains high, but slight decline in 2023/24
• The number of trainees in the dual system rose minimally to 1,216,560.
• 69,000 training places remained unfilled, unfilled applicants at a record high.

Business climate and the economy

• BA-X shows demand for labor at a low level, index at 107 points.
• Ifo business climate index fell to 85.4 points, sentiment among managers deteriorated.
• Skills shortages remain at a historic high, especially in certain sectors.