Shortage of Skilled Workers in Germany

The shortage of skilled workers is an important and urgent issue in Germany. The lack of skilled workers in Germany has far-reaching consequences, both economically and socially.

An Overview in Numbers

About 55% of companies already see the shortage of skilled workers as a risk today. According to estimates by the Federal Employment Agency, Germany currently needs 400,000 immigrants per year. By 2030, the number of working-age individuals between 20 and 65 years is expected to decrease by 3.9 million. By 2060, one-third of the workforce would be missing if Germany did not allow immigration.

The Shortage of Skilled Workers in Germany Exists in Specific Sectors and Regions

Unlike temporary and regionally limited shortages, a shortage of skilled workers means that jobs in certain sectors cannot be filled or are only filled after long vacancies. While the Federal Employment Agency's shortage analyses do not yet speak of a nationwide shortage of workers, they do identify shortages and a lack of skilled workers in specific sectors and regions.

Affected Sectors and Occupational Groups

The occupational groups affected by shortages include:

• Experts (with university degrees)
• Specialists with master craftsman or technician training
• Skilled workers with two- to three-year vocational training

A shortage of skilled workers has been identified by the Federal Employment Agency in the following areas:

• Healthcare and nursing professions
• STEM fields (Science, Technology, Engineering, and Mathematics)
• Construction professions.

Regional Shortage of Skilled Workers

Regions particularly affected by the shortage of skilled workers in Germany include southern and eastern Germany, especially Thuringia. In Baden-Württemberg, 83% of all job postings are in shortage occupations. By comparison, in Berlin, it is only 38%. The shortage of young workers is especially noticeable in rural areas, which are often structurally weaker regions.

Causes of the Shortage of Skilled Workers

One cause is the demographic development in Germany. In the coming years, more and more people from the 'baby boomer' generation (born in the 1960s-70s) will retire. Due to a low birth rate, the number of trainees and future workers is also decreasing.

Other reasons include digitalization and automation. Many jobs will disappear due to digitalization. At the same time, digitalization requires the qualification of unskilled workers and those whose jobs are disappearing. However, vocational training and the labor supply often cannot keep pace with the rapidly occurring structural changes.

Other causes of the shortage of skilled workers include workplace design and the expectations of the workforce.

Strategies Against the Shortage of Skilled Workers / Domestic

To increase workforce participation domestically, the compatibility of work and family must be improved. Age-appropriate workplace design would enable people to continue working beyond the standard retirement age. More attractive workplaces with temporal and spatial flexibility, as well as a more effective transition from school to vocational training, would also have a positive impact. Another important potential for the labor market is the integration of refugees and asylum seekers in Germany.

The Skilled Immigration Act (FEG) and the Recognition of Foreign Professional Qualifications

Given Germany's demographic development, recruiting new skilled workers domestically will not be sufficient to meet demand. To counteract this, the federal government has decided to promote increased but targeted migration. Therefore, the Skilled Immigration Act (FEG) came into effect on March 1, 2020. It facilitates entry for skilled workers from non-EU countries who are looking for a job or want to qualify for a profession. This also applies to people from Iran.

Skilled workers from third countries have a legal right to have the equivalence of their foreign professional qualifications with a German qualification assessed. This is – alongside acquiring language skills – an important step to removing barriers to employment.

Make it in Germany

The 'Make it in Germany' information portal was established as a central point of contact. It is aimed at skilled workers from third countries as well as companies looking to hire skilled workers from abroad. The multilingual portal provides information on topics related to immigration and living in Germany and also offers a job board.

DIBeratung and Job Searching in Germany

With more than 13 years of experience, DIBeratung offers extensive support to successfully find a job in Germany and continue life in a new country. This includes language courses, visa consultation for skilled workers and companies, as well as support for relocation to Germany.