Increasing scarcity of skilled workers persists across various German industries
In a recently published report by the Institute for German Economics (IW), it is forecasted that by 2028, Germany will experience a significant shortage of around 768,000 skilled workers, a substantial increase from the 487,000 vacancies recorded in 2024.
The occupations most affected by this shortage include educators and kindergarten teachers, caregivers in nursing homes and social workers, and sales workers. Demographic changes, particularly the retirement of large post-war generations, are identified as the main drivers of this growing shortfall.
The report emphasises that the shortage will have a profound impact on everyday life, with fewer educators and caregivers potentially leading to reduced hours or extended responsibilities for childcare and elderly care.
According to the report, the metalworking professions are expected to experience the largest overall decline in the number of skilled workers, with numbers projected to fall by over 160,000 by 2028. In contrast, demand will continue to surge in IT and digital professions, with a 26 percent increase in jobs expected by 2028.
Health and nursing care, as well as social work and social pedagogy, are also projected to face labor shortages, with 21,350 and more than 21,150 unfilled positions respectively by 2028. The labor shortage in childcare is projected to result in around 30,800 unfilled positions by 2028.
The authors of the report recommend several measures to address this issue, including creating new incentives for longer working lives such as flexible retirement and opportunities for retraining. They also urge the government to facilitate skilled immigration on a large scale by making it easier for qualified professionals from abroad to enter and work in Germany.
The authors warn that Germany's skills shortage won't be solved without decisive and coordinated action from government, industry, and society. The current black-red government has voiced similar goals, but labour and migration experts have expressed concerns about some of the coalition's initial moves, such as scrapping fast-track citizenship for highly integrated individuals, which may discourage immigration by skilled workers.
The former traffic light coalition government had implemented some ambitious policy changes aimed at boosting immigration of skilled workers and improving integration efforts. These included initiatives to streamline the immigration process and provide more support for immigrants to integrate into German society.
In conclusion, the IW report underscores the urgent need for immigration, workforce training, and policy adjustments to mitigate the projected skilled worker shortage in Germany by 2028. The report highlights that without decisive action, the shortage could have far-reaching consequences for various sectors of the economy and everyday life in Germany.
| Year | Unfilled Skilled Jobs Forecast | |-------|------------------------------| | 2024 | 487,000 | | 2028 | 768,000 |
| Occupations Most Affected | |-----------------------------------| | Educators & Kindergarten Teachers | | Caregivers & Social Workers | | Sales Workers |
- The urgency for policy changes in Germany becomes evident as the IW report forecasts a significant increase in unfilled skilled jobs, particularly in Health and nursing care, social work and social pedagogy, childcare, and metalworking professions, by 2028.
- The ongoing politics and policy-and-legislation debates surround robust immigration policies, effective workforce training, and policy adjustments to combat the projected general-news issue of skilled worker shortage in Germany by 2028.
