The shortage of qualified labor is caused by an aging population and exaggerated by the pandemic. According to recent surveys, a record 50% of firms are cutting output due to staffing issues, costing the economy up to $85 billion per year.
The Local has been reporting that Germany has been trying to plug its worker gap. In 2020 the government eased some immigration laws to help attract workers – and the new government plans to go even further. In order to deal with labor shortages, Germany needs around 400,000 new workers every year, according to the Federal Employment Agency.
Germany is struggling with a growing worker shortage across the entire job market.
Germany’s skilled workers’ shortage reached record levels in the first quarter of this year.
In March, the number of vacancies rose to a new high of 558,000, said the Competence Centre for Securing Skilled Labour (KOFA) last month. It means that the skilled labor gap widened by 88,000 vacancies within just three months.
Job Vacancies Across The Board
According to a recent KOFA study, the growing shortage of skilled workers impacts the entire labor market. However, there are significant shortages in the health, social services, teaching, and education sectors and in construction, architecture, engineering, surveying, and building services.
Six out of every ten jobs in health, social services, teaching, and education are unfilled. There are also more than average job openings in raw material extraction, production and manufacturing, natural sciences, geography, information technology, agriculture, forestry, and horticulture.
The number of job openings for qualified aviation and energy technology applicants has also recently increased significantly. Another study, the KfW-ifo Skilled Workers Barometer May 2022, found that shortages affect economic sectors such as legal and tax advisors and auditors.
“Skilled worker shortages have once again become a growing challenge for Germany’s future,” according to the KFW research. “A large number of businesses are affected. Tensions in international trade relations and supply chain disruptions will continue to pressure Germany’s export economy, which accounts for roughly a quarter of all jobs.”
“At the same time, demographic change is expected to exacerbate the shortage of skilled workers in critical sectors of the economy such as skilled trades and health care. And digitalization will have a significant impact on which skills are in demand in the future.”
Festivals Call For Staff
Staff shortages are also affecting other industries. In Germany, festival organizers, restaurants, cafes, and bar managers have difficulty filling positions.
Part of the issue was that lockdowns and closures forced hospitality workers to work for months on end in 2020 and 2021. By the time the bars, cafes, and restaurants reopened, many had found work elsewhere or were hesitant to return.
Long hours, anti-social working hours, unstable contracts, and lower pay make the hospitality industry less appealing to potential employees.
Last summer, some festivals in Germany had to beg for workers.
The organizers of the “Umsonst & Draußen” festival in Würzburg made a dramatic public appeal at the end of April, calling for 300 volunteers to help put on the festival.
Ralf Duggen, the festival’s organizer, stated that students, who typically work summer jobs, were not showing up to work after two years of festival cancellations.
He said that workers with the necessary skills were becoming increasingly scarce, particularly in the manufacturing sectors that power Germany’s exporting powerhouse.
According to the survey, 67% of electrical equipment manufacturers and 67% of mechanical engineering firms were unable to fill vacancies. 65% of car manufacturers reported labor shortages.
How Does Dynamic Group Help?
Dynamic Staffing Services is one of India’s best International recruitment agencies, assisting skilled workers in applying for the best suitable jobs in Germany. We are dedicated to placing qualified candidates in the best jobs available overseas from the Indian subcontinent. We have a thorough understanding of its current requirements, allowing us to provide you with a customized service that meets your needs.
In case you are looking to have a career in Germany, Dynamic Staffing Services is always there to help you land the best career options. If you are looking for a job, apply here!