The weak economy in Germany has also curbed the shortage of skilled workers somewhat. In October, only 39 percent of all companies stated that they were hindered in carrying out their business because they did not have enough or sufficiently qualified staff, the state development bank KfW said based on its current skilled worker barometer. Tax consultants, auditors, architectural offices, but also restaurants and retailers are particularly affected.
“The proportion of companies that see their business activities hampered by a lack of skilled workers has fallen below the 40 percent mark for the first time in two years due to the economic slowdown,” KfW chief economist Fritzi Köhler-Geib told the German Press Agency. If the economy recovers, the problem could get worse again. Furthermore, many so-called baby boomers, i.e. the generation from the baby boomers up to the mid-1960s, retired. The following years are numerically weaker.
“In 2025, the number of employed people will begin to shrink and the skilled worker shortage will usher in a new phase,” said Köhler-Geib. In the longer term, the shortage of skilled workers has the potential to limit growth in Germany to less than one percent.
In July 2023, 43 percent of companies stated that they were weakened by personnel problems. In July 2022 it was even 50 percent. “Despite this significant decline, the shortage of skilled workers remains at a very high level compared to historical standards and therefore continues to be a challenge for the economy,” says the KfW skilled workers barometer.
Big regional differences
Overall, small and medium-sized companies are affected just as often as large ones. However, there are significant regional differences. Companies in eastern Germany are by far the most affected by a shortage of skilled workers at 44 percent, while companies in northern Germany are least affected at 33 percent.
If you look at the sectors, industry and the construction sector come off best: only 29 percent complain about not being able to get the right people. However, the proportion is highest among service providers at 45 percent. In retail, 33 percent of companies reported a shortage of skilled workers, and in retail even 39 percent reported a shortage. Tax consultants have the biggest shortage at 77 percent, followed by transport companies at 64 percent. According to the barometer, the shortage of skilled workers has decreased significantly in the textile industry (11 percent), the chemical industry (16 percent), furniture manufacturing (20 percent) and the automotive industry (26 percent), among others.
For the skilled worker barometer, around 9,000 companies from the manufacturing, construction, trade and services sectors are surveyed once a quarter, including around 7,500 medium-sized companies.
