Dealing with Personnel Shortages: Over 80% of German Businesses Struggle with Skills Gap
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Businesses Struggle Due to Lack of Skilled Workers: 84% Reported Shortage - Majority of Enterprises Struggle with Skilled Labor Shortage, According to Research
The workforce crisis continues to be a significant challenge for businesses across Germany. According to a study by the Institute for Employment Research (IAB), an eye-opening 84% of businesses in Germany are currently grappling with a skills shortage. As per IAB researcher Michael Oberfichtner, this issue persistently ranks as the most pressing concern in various industries. Other hurdles include high labor costs and frequent absenteeism, as indicated by the IAB Business Panel report.
Nearly two-thirds of businesses express doubts about their ability to attract and retain qualified personnel in the future. The construction industry, in particular, harbors intense reservations, with only a quarter anticipating an absence of issues.
The solutions proposed by about half of the surveyed businesses involve enhancing staff education, personnel development, and improving work-life balance to tackle the skills shortage.
Hmm, IAB fellow Ute Leber points out that five percent of businesses foresee having excess personnel—mainly within the manufacturing sector. She attributes this to weak external trade and the ongoing energy transition.
In 2022, 55% of businesses cited high labor costs as a burden—an increase of 12 percentage points compared to 2021. Industries such as manufacturing, wholesale, and retail reported these burdens more frequently than the average.
While the labor shortage seems less pronounced in more straightforward tasks like entry-level positions, it still persists. One in three businesses expects difficulties in recruiting for this segment, especially the hospitality industry, other service providers, agriculture, mining, and temporary employment agencies.
You might wonder why Germany faces such a substantial skills shortage. Well, start-ups and young companies in Germany are taking a proactive approach to mitigate the future shortage. They prioritize creating attractive employment conditions, long-term personnel development, better work-life balance, and ongoing education for their employees. Moreover, businesses are investing in Industry 4.0 training and focusing on internal hiring strategies to prepare their workforce for digital transformation and automation.
- Germany
- Skills Shortage
- IAB
- Future
- Economic Challenges
- Industry 4.0 Training
- Hiring Practices
- Many German businesses are grappling with a skills shortage, as indicated by a study by the Institute for Employment Research (IAB).
- One proposed solution by half of the surveyed businesses involves enhancing staff education, personnel development, and improving work-life balance to tackle the skills shortage.
- Ute Leber, a fellow at the IAB, mentions that five percent of businesses foresee having excess personnel, mainly within the manufacturing sector.
- The community policy should focus on vocational training and its importance in addressing the skills shortage and preparing workers for digital transformation and automation in the future.
