Shortage of Skilled Workers in Germany: Strategies for Sustainable Solutions
The shortage of skilled workers in Germany affects critical sectors of society – from nursing and healthcare professions to technical fields. With a growing number of unfilled positions, currently approaching 767,000, the economy and politics must urgently react to maintain operations and ensure the country’s future viability. This article highlights the causes, consequences, and the most promising strategies Germany is using to address this pressing issue.
Key Points at a Glance
- Germany faces an acute shortage of skilled workers in over 300 professions, significantly impacting the economy, driven by various causes such as demographic change and emigration.
- Measures to secure skilled workers include the EU Blue Card, the Skilled Workers Immigration Act, and the integration of migrants into the labor market through international cooperation for shaping labor migration.
- Agencies offer companies the placement of foreign skilled workers as a service.
- Companies can combat the shortage through further education, attractive workplace design, promoting diversity, and activating untapped labor potential, while political measures foster improved labor participation and simplified immigration of skilled workers from abroad.
The Shortage of Skilled Workers in Germany: A Current Overview
The shortage of skilled workers in Germany is one of the most pressing challenges of our time. With over 300 out of 801 professions already suffering from an acute lack of qualified personnel, the economy faces significant cutbacks. Companies struggle with revenue losses and face one of the greatest threats to their development. This situation results from various causes: from global competitive structures to increasing vacancy periods, a general labor shortage, and high demand for skilled workers in certain circumstances.
The cross-sector skilled worker strategy introduced by the federal government in autumn 2022 aims to remedy this. But how can these plans be implemented when nearly 767,000 positions nationwide remain unfilled?
What is a Skilled Worker Shortage?
A skilled worker shortage occurs when more qualified job openings exist than available workers. This imbalance in the labor market is particularly persistent in Germany. Long-term vacant positions are a clear indication of this shortage, which urgently needs to be addressed.
Which Sectors are Most Affected by the Skilled Worker Shortage?
The sectors most affected by the skilled worker shortage in Germany include social, health, and technical professions. This leads not only to supply shortages but also makes maintaining normal operations difficult. Especially affected are:
- Nursing professions
- Technical fields
- Craft
- Medical therapy professions
- STEM professions
These sectors are essential for the functioning of society and the well-being of people.
Regional Differences in the Skilled Worker Shortage
The shortage of skilled workers is not uniform across Germany. Particularly in parts of Eastern and Southern Germany, this problem is pronounced. Rural areas and the East of the country struggle with the emigration of their skilled workers, exacerbated by the attraction of urban areas or neighboring countries.
Securing Skilled Workers through Immigration
Given such a challenge, it becomes clear: the immigration of skilled workers from abroad is a key solution. The federal government has recognized this and firmly anchored the integration of refugees and the utilization of migrants’ potential in the labor market in its strategy to secure skilled workers.
EU Blue Card and Skilled Workers Immigration Act
The EU Blue Card and the Skilled Workers Immigration Act are the legal pillars on which qualified immigration to Germany is built. Chancellor Olaf Scholz emphasizes the importance of these laws for the German economy and securing the skilled worker base. To simplify and expedite the immigration of skilled workers, the federal government plans to reduce bureaucratic hurdles.
The Opportunity Residence Permit additionally allows an 18-month probationary stay, which can lead to long-term residency under certain conditions.
Integration of Migrants into the Labor Market
The integration of refugees into the German labor market is a success story, significantly shaped by welcome guides. In 2018, they mediated almost 10,000 refugees, over 2,500 of whom were integrated into dual training programs.
Pilot Projects and International Cooperation
Innovative pilot projects like THAMM, supporting labor migration between North Africa and Europe, are pioneering the future of migration. Such projects demonstrate how international cooperation can explore new ways of securing skilled workers.
Placement Agencies
Some providers offer the placement of foreign skilled workers as a service for companies. Approaches and professionalism vary greatly among providers. Unfortunately, some “bad apples” in this field charge high fees to the workers being placed.
Measures Against the Skilled Worker Shortage in Companies
Companies are not helpless against the skilled worker shortage. By modernizing the education system and expanding further education measures, they can actively counteract it. But there are other strategies companies can pursue.
Further Education and Qualification
Further education plays a crucial role in combating the skilled worker shortage. The new Further Education Act strengthens training promotion and simplifies access to educational measures.
For companies, it is particularly important to continuously further educate their employees to meet changing requirements.
Workplace Design and Social Benefits
An attractive working environment can reduce the willingness to change jobs. Flexible working time models can help retain the experience of baby boomers. However, rising wages in shortage sectors can also lead to higher production costs and affect competitiveness.
Promoting Diversity and Inclusion
The federal government encourages companies to harness the benefits of a diverse workforce. The potential of women and people with a migration background should be activated through targeted measures. Cooperation with the Federal Employment Agency can be helpful here.
Political Measures for Securing Skilled Workers
Political measures are essential for sustainably combating the skilled worker shortage. The new skilled worker strategy of the federal government aims to increase labor participation and better utilize the potential of refugees.
Reducing bureaucratic hurdles to promote the immigration of skilled workers from abroad is a key point here.
Training and Further Education Laws
The Further Education Act, which came into force in July 2023, offers a training guarantee and introduces qualification money. It replaces state-specific regulations and simplifies further education promotion.
Incentives for the Return of German Skilled Workers from Abroad
The return of experienced experts from retirement can help reduce the skilled worker shortage. Companies like BMW already demonstrate the value of returning retirees’ experience.
The Influence of Demography and Change on the Demand for Skilled Workers
Demographic change and low birth rates exacerbate the skilled worker shortage in Germany. By 2030, a decline of about 3.9 million workers is expected. This trend could affect various industries and sectors.
Baby Boomer Generation and Retirement Age
To address the skilled worker shortage, an increase in the retirement age is being demanded.
Particularly in Western Germany, the demand for older workers is rising.
Digitalization and New Job Profiles
Digitalization fundamentally changes the world of work and creates new job profiles and qualification requirements.
Future Prospects and Opportunities in the Fight Against the Skilled Worker Shortage
Visionary approaches and entrepreneurial innovation strategies are crucial for the long-term overcoming of the skilled worker shortage.
The dual transformation of the world of work places new demands on the competencies of skilled workers.
Activating Untapped Labor Potential
By qualifying unemployed and unskilled workers, the skilled worker gap could be significantly reduced.
Transformation of the World of Work and New Employment Models
New employment models such as self-organized teams and virtual organizations can contribute to solving the skilled worker shortage.
Summary
The multifaceted challenges of the skilled worker shortage require rethinking at all levels. From the immigration of qualified skilled workers to the further education and qualification of domestic workers to political decisions – only through comprehensive and cooperative approaches can the problem be sustainably solved.
Frequently Asked Questions
What are the main causes of the skilled worker shortage in Germany?
The main causes of the skilled worker shortage in Germany are global competition for well-trained workers, increasing vacancy times for open positions, and demographic factors such as low birth rates and the retirement of the baby boomer generation. These factors significantly impact the labor market.
Which sectors are particularly affected by the skilled worker shortage?
The skilled worker shortage particularly affects social, health, and technical professions, crafts, and STEM professions. These sectors are crucial for the functioning of our society.
How does immigration contribute to securing skilled workers?
The immigration of qualified skilled workers significantly contributes to closing the skilled worker gap by easing immigration and integration through legal regulations such as the EU Blue Card and the Skilled Workers Immigration Act.
What political measures have been taken to combat the skilled worker shortage?
To combat the skilled worker shortage, the federal government has introduced a new skilled worker strategy that increases labor participation, boosts the immigration of skilled workers from abroad, and better utilizes the potential of refugees. Further education laws have also been reformed to simplify access to educational measures.
What future prospects exist in the fight against the skilled worker shortage?
In the future, modern technologies, further education, qualification, and the integration of untapped labor potential will be important measures in the fight against the skilled worker shortage. Adapting to digital and ecological changes will also be significant.
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Stephan is the Managing Partner of FMC Group.
Before joining FMC Group, Stephan worked more than 8 years for Accenture’s management consulting practice. His main projects were in the manufacturing and automotive industry, where he focused on transformation and digitalization programs. Stephan has a strong knowledge when it comes to „remote resources“. In many projects, he was involved in the definition and implementation of nearshore resources, offshore delivery teams or the set-up of shared service centers.
He started his career in the semiconductor industry, where he worked as project manager in Asia and as key account manager for governmental clients.
Stephan holds a Master of Business Administration (MBA) from the University of St. Gallen and a Diploma (Dipl.-Ing.) in Automation Technology from the University of Stuttgart.