Shortage of skilled workers in Germany in 2024 (2024)

According to a recent study, the shortage of skilled workers in Germany is primarily in craft and technical professions. Strong increase in the logistics sector as well as constantly high demand in IT.

Acute shortage of skilled workers in skilled trades and technical occupations

A current analysis of published job vacancies in Germany has revealed that the shortage of skilled workers in Germany is currently affecting mainly craft and technical occupations. According to this survey, skilled workers in the construction and skilled trades (349,275 jobs) and technical specialists (282,941 jobs) are currently the most in demand on the German labor market. As in previous years, these occupational groups occupy the first two places and together comprise 36.6 percent of the published and evaluated job offers in July 2022.

There are also many vacancies for specialists in the occupational group of health, medicine and social services. Although demand here had already increased significantly in the past two years, in contrast to other occupational groups, job postings have again risen at an above-average rate compared to the same month last year (+32.7 percent). Particularly in Saxony-Anhalt, Mecklenburg-Western Pomerania and Brandenburg, there is currently an increased demand for healthcare professionals.

Shortage of skilled workers in Germany: sharp rise in the logistics sector

According to the evaluation commissioned by the German Bundesarbeitgeberverband der Personaldienstleister e. V. (BAP – Federal Employers’ Association of Personnel Service Providers), sales and distribution specialists (232,347 jobs) took fourth place in the top 10 ranking of the most sought-after occupational groups in July. This group thus slips down one place compared with the same period last year.

But even so, job growth here is also 25.1 percent. In contrast, demand in the transport, traffic, logistics and warehousing sector has risen particularly strongly (+46 percent). Many opportunities are available here for employees without special qualifications. This is because the proportion of unskilled employees in transport and logistics in demand has risen and now accounts for 36.8 percent of all jobs in this sector.

Constant demand in IT

Places 6 to 9 are occupied by the occupational groups secretarial, office management and administration (157,111 jobs) and finance and accounting (140,530 jobs). They are followed by IT and telecommunications (124,696 jobs) and organization and project management (111,848 jobs). ITC occupations are in particularly high demand in Berlin, Hamburg and Hesse, while no regional differences are noticeable in the other areas.

Compared with the other occupational groups, the number of jobs on offer in IT rose only slightly year on year (+2.7 percent). However, the occupational group has also seen less fluctuation over the past two years. By contrast, demand in the secretarial, office management and administration area has risen sharply (33.4 percent).

Shortage of skilled workers in Germany again stronger in hotel and restaurant industry

The desire to travel is almost as high again as it was before the Corona pandemic. As a result, there is a desperate need for waiters, cooks and temporary staff. A total of 108,246 jobs in the hotel and restaurant industry were published, a quarter more than a year ago. This is the first time in over two years that this occupational area has been represented in the top 10 ranking. In addition to Mecklenburg-Western Pomerania, an above-average number of jobs for new employees are currently being advertised here, particularly in Berlin and Brandenburg.

Questions and answers

Demographic Factors Influencing the Shortage of Skilled Workers in Germany

Demographic changes in Germany have become a major driving force behind the current shortage of skilled labor. One significant demographic factor is the country’s aging population. As per the Federal Statistical Office of Germany, as of 2020, approximately 21% of the German population was aged 67 or older, and this figure is projected to rise to between 29% and 32% by 2060. This increasing proportion of elderly people implies that a substantial segment of the workforce is nearing retirement, leaving a vacuum in various sectors that require skilled labor.

Furthermore, Germany is grappling with a low fertility rate, which compounds the problem of an aging population. According to Eurostat data, in 2019, the fertility rate in Germany stood at 1.54, significantly below the replacement level of 2.1. This means that fewer young people are entering the labor market, which intensifies the problem of replacing retiring skilled workers.

Alongside an aging population and low birth rate, internal migration from East Germany to West Germany has also contributed to regional disparities in labor shortages. Eastern regions face a significant drain of young and educated individuals, leading to a severe shortage of skilled labor in these areas. Collectively, these demographic factors present a complex challenge that Germany needs to address to overcome the skilled labor shortage and ensure a robust and vibrant economy in the future.

The Impact of Immigration on Germany’s Skilled Labor Shortage

Germany’s skilled labor shortage has been partially mitigated by the country’s open immigration policies, which have actively sought to attract skilled workers from abroad. The immigration of skilled workers has become a key solution to combat the aging workforce and low fertility rate. In fact, since the introduction of the EU Blue Card and the Skilled Immigration Act, Germany has been able to attract a significant number of high-skilled immigrants.

The Skilled Immigration Act, which came into force in March 2020, aims to facilitate and accelerate the immigration process for qualified professionals from outside the EU. The Act has provisions that acknowledge foreign qualifications and extends the possibilities for qualified professionals to come to Germany to look for a job. It has been instrumental in addressing the labor market needs, particularly in sectors like healthcare and IT where the demand for skilled labor far exceeds the supply.

However, it’s crucial to mention that while immigration helps alleviate the skilled labor shortage in the short term, it is not a panacea. Long-term strategies such as investment in education and training, increased labor participation among women and older workers, and digital transformation are essential to ensure the sustainability of Germany’s labor market. Moreover, integration measures like language courses and cultural training are vital to the success of immigration policies, ensuring that foreign workers can effectively contribute to the German labor market.

Efforts to Combat the Skilled Worker Shortage in Germany

In response to the growing shortage of skilled workers, Germany has undertaken a variety of initiatives aimed at both broadening the domestic labor pool and attracting foreign talent. One of the primary strategies has been the enhancement of vocational training programs, known in Germany as the “dual system”. This involves students spending part of their week at a trade school and the rest at a company, effectively merging theoretical education with practical training.

In recent years, Germany has also been working to foster greater interest in STEM (Science, Technology, Engineering, and Mathematics) fields among young people. To this end, the government has implemented a variety of educational initiatives, including partnerships with technology companies to bring more cutting-edge tech into classrooms and the promotion of mentorship programs in STEM fields. The aim is to stimulate interest and engagement in these areas early on and ensure a steady stream of skilled workers in the future.

Simultaneously, Germany has been making efforts to improve work conditions and enhance incentives for workers already in the country. This includes measures such as increasing wages, improving work-life balance, and promoting further education opportunities for employees. Moreover, recognizing the untapped potential of certain demographic groups, initiatives have been launched to encourage higher labor force participation among women, older adults, and individuals with a migration background. By leveraging these strategies, Germany aims to bridge the skilled worker gap and foster a more resilient and dynamic labor market.

Sector-Specific Analysis of Skilled Worker Shortage in Germany

Certain sectors in Germany are more acutely affected by the shortage of skilled workers than others. For instance, the healthcare industry is one such sector that has been hit hard. The ongoing demographic shift towards an older population has significantly increased the demand for healthcare professionals. According to a study by Bertelsmann Stiftung, Germany could face a shortage of 3 million skilled healthcare workers by 2030 if current trends continue.

Another sector struggling with a significant skills gap is Information Technology. The digital revolution and rapid advances in technologies like Artificial Intelligence and Machine Learning have led to an escalating demand for IT professionals. The German IT association Bitkom reported that there were 86,000 vacant positions for IT specialists in 2020, a figure that has likely risen given the accelerated digitization spurred by the COVID-19 pandemic.

Similarly, the engineering sector in Germany, a cornerstone of the nation’s robust industrial economy, has consistently reported a shortage of skilled workers. The Association of German Engineers (VDI) indicated a deficit of about 100,000 engineers in the country as of 2020. Meanwhile, the construction industry, which plays a crucial role in the country’s infrastructure development, has also been affected by labor shortages, impacting the pace of construction and infrastructure projects. Addressing the sector-specific challenges posed by the skilled worker shortage is therefore a key aspect of maintaining Germany’s economic stability and growth.

How can internationals benefit from this trends?

The many unfilled jobs in Germany and new opportunities for non-EU citizens to take up employment offer many new opportunities. This starts with the dual apprenticeship program, continues with dual studies in Germany and ends with direct employment in Germany. It is expected that the opportunities for internationals will continue to improve in the coming years, among other things through the opportunity card called Chancenkarte.

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