The demand for skilled workers in Germany has decreased slightly due to a weakening economy, according to the ifo Institute. However, this issue is expected to worsen in the long term.
The shortage of skilled workers in Germany has slightly eased, according to a survey by the ifo Institute. As of July, just over one-third of German companies (33.8%) reported difficulty in finding qualified workers, down from 34.9% in April. The decline is attributed to the weakening economy, which has reduced demand for skilled workers, according to ifo expert Klaus Wohlrabe. Despite this current decrease, Wohlrabe warns that demographic changes will exacerbate the problem in the long run.
Industries still heavily affected by the shortage
The survey indicates that service providers are still significantly impacted by the shortage, with 39.7% of such companies facing challenges in hiring skilled staff. This includes temporary staffing firms, legal and tax consultancies, and auditing firms. The logistics sector is also struggling, with nearly two-thirds of companies reporting a shortage. In contrast, the manufacturing industry, automotive sector, furniture industry, retail, and construction are less affected, with only about one-quarter of companies in these sectors experiencing issues.
The ifo survey, which includes around 9,000 companies in Germany from manufacturing, construction, retail, and service sectors, is conducted quarterly to assess the impact of skilled worker shortages on business operations.
