The Bitter Pill of Skilled Labor Shortage in Old East Germany
The grim reality of a depleting pool of skilled workers in old East Germany is becoming increasingly palpable.
As Chairwoman Andrea Nahles returns from her visits to the new states, she comments on the situation, stating, "The demographic shift in the eastern states is advancing at a faster and more significant pace than in western Germany." The root cause lies in the exodus of young people from the eastern states post-reunification, leading to an elderly population that surpasses the national average, creating a scarcity of skilled workers.
Unfortunately, while employment growth persists in West Germany, it's seeing a decline in the East. According to Nahles, "East Germany is serving as a demographic forecast for the entire nation in a few years."
But there's a silver lining – the economy, particularly in Thuringia, is significantly benefiting from the influx of foreign laborers. Since 2017, employment growth there owes entirely to non-German citizens. This trend is catching on nationwide, as of 2023.
As Nahles points out, it's crucial to maintain appeal in these regions for immigrants, fostering an inclusive, diverse, and welcoming culture. proves this point, as surveys indicate strong support for the AfD, which advocates for immigration restrictions.
An interesting observation for several months has been the steady increase in unemployment, despite the shortage of skilled workers. Economist Fritzi Köhler-Geib also mentioned, "The economic stagnation is now evident on the labor market."
By August 2024, the unemployment rate in Germany rose to 2,872,000, representing a rise of 176,000 compared to August last year. The unemployment rate rose by 0.1 percentage points to 6.1 percent compared to July, and the number of job vacancies decreased by 72,000 to 699,000 compared to the previous year.
State Secretary Lilian Tschan from the Federal Ministry of Labor sees this as a positive sign, praising the increasing number of Ukrainian refugees finding employment. By June 2024, 207,000 Ukrainian citizens were in socially insured employment, with an additional 52,000 in mini-jobs.
Things appear more promising on the training market. Between October 2023 and August 2024, 418,000 young individuals applied for a training position, representing a 10,000-person increase compared to the previous year. Despite this, 82,000 remained without either a training position or an alternative. Meanwhile, out of a total of 502,000 training places, 158,000 remained vacant.
Employer President Rainer Dulger emphasizes the significance of addressing the skills shortage at its source. Germany urgently needs improvements in education quality and a job-oriented vocational orientation to tackle the issue. Over a third of training positions went unfilled last year, with small businesses seeing nearly two-thirds go unfilled. "This gap is like a black hole that threatens our future prospects if we don't act," said Dulger.
To sum up, the skilled labor market in old East Germany is grappling with significant challenges due to demographic changes and a shortage of skilled workers. However, the influx of foreign workers is playing a crucial role in boosting the economy, particularly in Thuringia. Improving the recognition of foreign qualifications, offering more language support, and further professional training are necessary to attract and integrate foreign workers effectively. Education quality and a job-oriented orientation are essential for preparing the next generation of workers to meet the demands of the labor market.
Youths fleeing their war-torn homes might just be the missing piece in Germany's aging workforce puzzle. Follow to explore the impact of refugee labor on the German job market.
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