Germany is facing a big challenge: a shortage of skilled workers. This shortage is affecting many different industries, from healthcare and engineering, to IT and other skilled trades. This is due to a combination of demographic changes, economic growth, and evolving technological needs. It's important to address this shortage of skilled workers (so-called “Fachkräftemangel”) to keep the economy stable and growing. The German labor market has seen some pretty big swings in employment rates over the past few decades. Recent projections suggest that the workforce might be on the decline. As of 2023, around 45.8 million people were employed in Germany, but the country still has a significant labor shortage. By bringing in foreign workers, Germany can help to mitigate the impact of its labor shortage and ensure sustainable economic growth. Are you interested in relocating to Germany? There are plenty of opportunities for career, professional development, and personal growth here. The labor shortage in Germany is present in various professions, collectively referred to as "Mangelberufe." These shortages span multiple sectors critical to the economy and public welfare. Healthcare Sector Engineering and Technology Logistics and Construction Education Below, you will find a list of the 10 most in-demand professions and their respective German terms. Find your dream job in Germany Make it happen with the new 12-month job search visa. Germany’s labor shortage is driven by several key factors that you should be aware of if you're considering moving and working in Germany. Firstly, demographic changes and an aging population mean that more people are retiring than entering the workforce. This issue is worsened by a long-term decline in birth rates, leading to fewer young workers. Additionally, gaps in education and vocational training result in mismatches between job seekers' skills and employers' needs, especially in emerging industries and high-tech sectors. Rapid economic growth in sectors such as manufacturing, engineering, and IT has also increased the demand for skilled workers, often outstripping supply. Geographic disparities add to the challenge, with rural areas facing more severe shortages than urban centers. Furthermore, Germany competes internationally for talent, with countries like the United States and Canada also attracting skilled immigrants. To welcome skilled professionals from around the world and address labor shortages, Germany is rolling out attractive initiatives. The government is making it easier for foreign talent to work in Germany through enhanced immigration policies like the EU Blue Card and the Opportunity Card. These policies streamline the process for skilled professionals to enter and thrive in the German job market. In order to ensure that job seekers have the skills needed in today’s dynamic industries, Germany is improving its education and vocational training systems. This alignment with market needs helps new workers integrate into the workforce easily. Germany is focusing on creating attractive working conditions by offering competitive salaries, flexible work arrangements, and a balanced work-life environment. These efforts are designed to make Germany not just a place to work but a place to build a fulfilling career. Regional development programs are also in place to address geographic disparities, making rural areas as appealing as urban centers for professionals. By implementing these measures, Germany is trying to fill the gaps in the labor market and keep its economy growing. It's also creating plenty of opportunities for international talent to contribute and succeed. Free Webinar Everything You Need to Know June 20th, 2024 Get tips from our experts to simplify your journey to Germany. Have your questions answered in our live Q&A. We’re here to help!Which jobs are in demand in Germany?
There is a high demand in Germany for doctors (general practitioners and specialist physicians), nurses, midwives, dentists, pharmacists, physiotherapists, dieticians, audiologists, optometrists, and other health-related professions.
There is a labor shortage of mechanical, electrical, civil, industrial, chemical, and mining engineers. Furthermore, there is a lack of IT professionals, software developers, system analysts, and network specialists.
There is a growing demand for professionals in various fields, including logistics management, truck driving, warehouse operations, construction supervision, and skilled trades such as electricians, plumbers, and carpenters.
The education sector in Germany is experiencing shortages of university professors, vocational education teachers, secondary and primary school teachers, special education teachers, and other specialized teaching professionals.What jobs can foreigners do? 10 Mangelberufe in Germany (“bottleneck professions”)
Factors contributing to Germany’s worker shortage
Measures to address the “Fachkräftemangel”
Chancenkarte
FAQs
How can we leverage labor shortage? ›
- Strategy 1: Competitive Compensation.
- Strategy 2: Comprehensive Benefits.
- Strategy 3: Ensuring Workplace Safety.
- Strategy 4: Career Advancement Opportunities.
- Strategy 5: Flexible Working Conditions.
- Strategy 6: Streamlined Hiring Process.
Make opportunities for them to develop and grow
Everything needs improvement – skills required for the job, where and how work is performed, and what motivates the workforce. To overcome labor shortages and retain employees, you must create opportunities for them to learn and grow.
"We lack hands and minds," Habeck said at news conference presenting the government's 2024 economic report, adding that unfilled vacancies were set to rise due to an ageing population. Official estimates suggest Germany's ageing society will be short seven million skilled workers by 2035.
What is the problem with the German workforce? ›Nearly a fifth of Germany's workforce (19%) is actively disengaged -- employees who are disgruntled and disloyal because their workplace needs are mostly unmet. Gallup estimates that active disengagement costs the German economy between 132.6 billion and 167.2 billion euros per year in lost productivity.
What is the leverage of labor? ›The Labor Leverage Ratio is a measure of worker versus employer bargaining power developed by Aaron Sojourner, a senior researcher with the Upjohn Institute.
What is the main reason for the Labour shortage? ›The causes of labour market shortages
Labour supply and employment are below pre-pandemic levels because of a rise in economic inactivity – people who are not in work and not looking for work.
Increasing the output of workers already on staff reduces the need for more workers and the need for overtime. There are two paths to improving productivity: Productivity gains can come from big ideas like eliminating tasks, reducing the frequency with which certain tasks are performed, or redesigning tasks entirely.
How can we solve the shortage of staff? ›- Act on Employee Feedback. ...
- Implement Reskilling and Upskilling Initiatives. ...
- Promote Work-Life Balance. ...
- Improve Your Company Culture. ...
- Increase Company Perks and Benefits. ...
- Hire Short-Term Workers. ...
- Continue to Build a Strong Team.
hiring temporary workers and outsourcing work. - The most widespread methods for eliminating a labor shortage are hiring temporary and contract workers and outsourcing work.
Which jobs are in shortage in Germany? ›Medical occupations and healthcare qualifications rank highly in potential shortage occupations in the labour market forecasts to 2030 of the German ministry of Labour and Social Affairs.
Why is the German economy struggling? ›
Germany's Real Challenges are Aging, Underinvestment, and Too Much Red Tape. Germany is struggling. It was the only G7 economy to shrink last year and is set to be the group's slowest-growing economy again this year, according to our latest projections. Some pundits say Germany's economic model is irreparably broken.
Which country has the most labor shortage? ›Labor Shortage Rates By Country
Japan has the highest recorded labor shortage rate at 85%.
As the population ages, demand for carers will keep growing. And there is also a shortage of people with the right technical and craft-based skills. At a higher level, there is a lack of doctors, engineers and information scientists – key occupations which will help shape Germany's economic future.
Why do Germans work so few hours? ›Germans Produce More — but Work Less
Because, historically speaking, strong German trade unions and work councils work together with employers to create circular business models in which profitable growth goes hand in hand with people initiatives.
- Recruiting: More Referrals = Better Employees.
- Optimize the Onboarding Experience.
- Make Training an Ongoing Process.
- Provide Context Around Why Policies and Processes Change.
- Better Scheduling for Better Lives.
- Build Better Teams Through Better Communication.
- Recognize and Reward.
In any situation involving a labor surplus, don't hire new workers. A hiring freeze is a necessary step while your company's management team determines the best path forward. In addition, you should end contracts with outsourced talent and transfer those tasks to internal labor instead.
How can we improve labor market? ›Ways to make labor markets more flexible include reducing or abolishing the minimum wage, reducing the power of labor unions, providing education and skills training to workers to improve mobility, making it easier to lay off workers, removing labor protection laws, and reducing unemployment.
What is an option for avoiding an expected labor shortage? ›Hiring employees from external sources is a fast option to avoid an unexpected labor shortage; plus. its revocability is high.