Germany’s pressing need for skilled professionals has eased compared to previous years, according to a new survey by the ifo Institute for Economic Research, published on February 17.
The survey found that 28 percent of German companies still report difficulties in finding qualified workers.
Experts attribute this shift to the country’s slowing economy. “The weak economic situation is currently reducing demand for qualified labor, which is why the shortage of skilled workers feels somewhat less acute,” explained ifo researcher Klaus Wohlrabe in an interview with AFP.
Labor shortages vary across industries. In the service sector, over 35 percent of businesses struggle to fill positions, with legal and consulting firms facing the most significant gaps—around 75 percent of companies in these fields report difficulty in hiring. Meanwhile, in the industrial sector, where job cuts are occurring, nearly one in five companies still face staffing challenges. The food industry, mechanical engineering, and furniture manufacturing report the highest demand for skilled professionals.
Despite the current decline in labor shortages, ifo Institute experts believe the trend is temporary. In the long run, Germany’s demographic situation is expected to drive renewed demand for skilled workers. According to a survey conducted by the Institute for SME Research, companies see an improved education system as the most effective solution, followed by attracting foreign professionals to fill the gaps.
