[Germany] Labour shortages at half of companies despite economic stagnation

According to a new survey from DIHK Chamber of Commerce and Industry, half of German companies are struggling to fill vacancies due to labour shortages, despite stagnation in the country’s economy, Reuters reports.

In common with industrialised countries around the globe, Germany - the euro zone's largest economy - is facing major labour shortages, particularly in skilled high-growth sectors.

The proportion of companies experiencing hiring difficulties was reportedly slightly down from the previous survey of 22,000 companies. The figure dropped to 50 per cent from 53 per cent in January but remained elevated.

"The skilled labour situation remains very critical," Achim Dercks - DIHK's Deputy Chief Executive - said.

The latest estimate showed that 1.8 million jobs remain unfilled in the German economy as a whole.

"This means that more than 90 billion euros ($98.8 billion) in added value will be lost this year," Dr Dercks said. "That corresponds to more than 2 per cent of gross domestic product."

Industry and construction sectors were revealed to have been hit the hardest by labour shortages, with 54 per cent and 53 per cent of those companies struggling to fill vacancies, respectively.

"Some sectors are not only talking about gaps in skilled labour, but about a general shortage of workers," Dr Dercks said.

The survey reportedly showed that eight out of 10 companies expect negative consequences from labour shortages.

To address this challenge the German government passed new legislation in 2023 - which came into force on November 18 - to attract foreign workers from non-EU countries.

Dr Dercks believes that the implementation of the new law will be crucial to fill the worker gap. "This will only happen very gradually," he said.

More than half of the companies see the recruitment of foreign labour and skilled workers as an option to secure skilled labour, according to the survey.

"What helps in any case is that companies are increasingly turning their attention to the topic and are very open to it," Dr Dercks said. "There is pressure from the business community to make this law a success."

Source: Reuters

(Link and quotes via original reporting)

According to a new survey from DIHK Chamber of Commerce and Industry, half of German companies are struggling to fill vacancies due to labour shortages, despite stagnation in the country’s economy, Reuters reports.

In common with industrialised countries around the globe, Germany - the euro zone's largest economy - is facing major labour shortages, particularly in skilled high-growth sectors.

The proportion of companies experiencing hiring difficulties was reportedly slightly down from the previous survey of 22,000 companies. The figure dropped to 50 per cent from 53 per cent in January but remained elevated.

"The skilled labour situation remains very critical," Achim Dercks - DIHK's Deputy Chief Executive - said.

The latest estimate showed that 1.8 million jobs remain unfilled in the German economy as a whole.

"This means that more than 90 billion euros ($98.8 billion) in added value will be lost this year," Dr Dercks said. "That corresponds to more than 2 per cent of gross domestic product."

Industry and construction sectors were revealed to have been hit the hardest by labour shortages, with 54 per cent and 53 per cent of those companies struggling to fill vacancies, respectively.

"Some sectors are not only talking about gaps in skilled labour, but about a general shortage of workers," Dr Dercks said.

The survey reportedly showed that eight out of 10 companies expect negative consequences from labour shortages.

To address this challenge the German government passed new legislation in 2023 - which came into force on November 18 - to attract foreign workers from non-EU countries.

Dr Dercks believes that the implementation of the new law will be crucial to fill the worker gap. "This will only happen very gradually," he said.

More than half of the companies see the recruitment of foreign labour and skilled workers as an option to secure skilled labour, according to the survey.

"What helps in any case is that companies are increasingly turning their attention to the topic and are very open to it," Dr Dercks said. "There is pressure from the business community to make this law a success."

Source: Reuters

(Link and quotes via original reporting)