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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.