Skills shortage causes lost value creation potential of almost 100 billion euros
According to the Institute for Employment Research (IAB), the German labor market could shrink by up to seven million workers by 2035.

A lack of skilled workers is an increasingly acute problem for the German economy. According to a DIHK survey, more than half of companies are unable to fill all vacancies.
More than half of German companies are having difficulties filling vacancies. This is the result of a survey of almost 22,000 companies published today by the Association of German Chambers of Industry and Commerce (DIHK). „We assume that around two million jobs remain vacant in Germany,“ said Deputy DIHK Managing Director Achim Dercks in Berlin. „This corresponds to a lost value creation potential of almost 100 billion euros.
„A dangerous mixture“
The shortage of skilled workers therefore remains one of the biggest problems for the German economy. According to the DIHK, the challenges in filling vacancies have become even more acute compared to the previous year, although many companies were expecting a difficult economic year and had scaled back their personnel planning. In the Skilled Workers Report, 53% of companies stated that they were affected by staff shortages – compared to 51% in the previous year. Never before have so many companies had complications when recruiting new employees. The situation on the labor market is relatively stable, despite the coronavirus pandemic and the energy crisis. „However, a dangerous mixture has been brewing under the surface for some time,“ says Dercks. This is not only weighing on individual companies, but is also slowing down the expansion of infrastructure, the energy transition and digitalization. The problems are particularly serious for manufacturers of electrical equipment, with 67% of companies affected. The figure is just as high in mechanical engineering and 65% in vehicle construction. As many as 71% of healthcare and social service providers are complaining of difficulties. The plight of the logistics sector is also striking. „The lack of drivers at logistics companies is making it increasingly difficult to deliver end products on time in retail, as well as raw materials and intermediate goods in industry,“ said Dercks. In the hospitality industry, staff shortages have led to a limited range of services and reduced opening hours.
Less bureaucracy, more immigration
According to the DIHK, in order to improve the situation, companies are primarily calling for a reduction in bureaucracy, which 52% would like to see. This would allow more staff to be deployed for companies‘ actual tasks. Vocational training should also be strengthened. Greater training for the unemployed is also seen as a way forward. According to the DIHK, further improvements in the compatibility of family and career and the participation of older people in the workforce are also urgently needed. For example, the Virchowbund medical association recently called on all medical practices to switch to a four-day week. In addition to economic considerations, it is also a „sign against the ever-increasing bureaucracy in medical practices and as a means against the shortage of skilled workers“. According to the DIHK, 35 percent of companies also hope to make progress by making it easier to recruit foreign specialists. According to estimates, a net 400,000 immigrants are needed each year to close the gap in the German labor market. According to the Institute for Employment Research (IAB), the German labor market could shrink by up to seven million workers by 2035 if no action is taken.