Shortage of Skilled Workers Decreasing in Germany

The problem of finding skilled workers has eased somewhat for companies in Germany, as the latest ifo Business Survey concludes. According to the survey, 22.7% of companies have a shortage of qualified workers, down from 25.8% in October, the lowest level in five years. “Weak economic development is continuing to play a role,” says ifo researcher Klaus Wohlrabe. “At the same time, technological change, especially artificial intelligence, is increasingly altering the labor market.”

The shortage of skilled workers fell particularly sharply in the transport and logistics sector, where the share of companies affected fell from 42.7 to 30.6%. Overall, around one in four service providers complained of a lack of personnel. Legal and tax advisors (58.4%), and temporary employment agencies (56.6%) continue to suffer particularly frequently from a lack of skilled workers.

In industry, 16.6% of companies report a shortage of skilled workers, half a percentage point less than in October. In the automotive sector and among manufacturers of electrical equipment, the share is just under 10%. In mechanical engineering, it is around 19%.

The situation has also eased somewhat in trade: Around 18% of companies report difficulties in filling vacancies with qualified workers (retail: 21.6%, wholesale: 16.2%). In the construction industry, however, the share of companies affected remains high at 30.4%.

“The decline must not obscure the fact that structural challenges remain,” says Klaus Wohlrabe. “The aging of the population is coming up against profound technological change, which will further shift the demand for certain qualifications.”