Labor market - KfW: Weakening economy curbs shortage of skilled workers
The weak economy in Germany has also slowed down the shortage of skilled workers somewhat. In October, only 39% of all companies stated that they were hindered in their business activities because they did not have enough or sufficiently qualified staff, according to the state-owned development bank KfW on the basis of its latest Skilled Labor Barometer. Tax consultants, auditors, architectural firms, but also restaurants and retailers are particularly affected.
"The proportion of companies that see their business activities hampered by a shortage of skilled workers has fallen below the 40 percent mark for the first time in two years due to the economic slowdown," KfW Chief Economist Fritzi Köhler-Geib told the German Press Agency. If the economy recovers, the problem could become bigger again. Many so-called baby boomers, i.e. the generation from the baby boomers up to the mid-1960s, are still retiring. The following cohorts are weaker in terms of numbers.
"In 2025, the number of people in employment will begin to shrink and herald a new phase for the shortage of skilled workers," said Köhler-Geib. In the longer term, the shortage of skilled workers has the potential to limit growth in Germany to less than one percent.
In July 2023, 43% of companies still stated that they were weakened by staffing problems. In July 2022, the figure was as high as 50 percent. "Despite this significant decline, the shortage of skilled workers remains at a very high level by historical standards and therefore continues to be a challenge for the economy," says the KfW Skilled Labor Barometer.
Large regional differences
Overall, small and medium-sized companies are affected just as often as large ones. However, there are considerable regional differences. For example, companies in eastern Germany are by far the most affected by skills shortages at 44%, while companies in northern Germany are the least affected at 33%.
Looking at the sectors, industry and the construction industry still fare the best: only 29% complain that they cannot find the right people. In contrast, the proportion is highest among service providers at 45%. In commerce, 33 percent of companies reported a shortage of skilled workers, in retail even 39 percent. Tax consultants have the greatest shortage at 77 percent, followed by transport companies at 64 percent. According to the barometer, the shortage of skilled workers has eased considerably in the textile industry (11%), the chemical industry (16%), furniture manufacturing (20%) and the automotive industry (26%), among others.
Around 9,000 companies from the manufacturing, construction, trade and services sectors, including around 7,500 SMEs, are surveyed once a quarter for the skills barometer.
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- Despite the improvement in the shortage of skilled workers due to the economic slowdown, Fritzi Köhler-Geib from KfW warns that if the economy recovers, the issue could intensify again in places like Nuremberg and Frankfurt.
- The German Press Agency reported that many sectors like tax consultancies, auditing firms, architecture firms, gastronomy, and retail trade, including places like Fritzi Köhler-Geib's home city Frankfurt, are particularly affected by the shortage of skilled workers.
- In the long term, the KfW Skilled Labor Barometer predicts that the shortage of skilled workers could limit Germany's economic growth and even impact retail trade in regions like Frankfurt and Frankfurt am Main, causing a significant impact on local businesses.
- The retail sector, including various stores in Frankfurt am Main, is one of the industries most affected by the shortage of skilled workers in Germany, with 39% of companies in retail trade reporting a shortage, according to the recent KfW Skilled Labor Barometer survey.
- In an effort to address the shortage of skilled workers, KfW Banking Group, headquartered in Frankfurt am Main, collaborates with various sectors, including gastronomy, to promote training and development programs as they recognize the crucial role that skilled workers play in driving economic growth and prosperity in Germany, such as Fritzi Köhler-Geib's region.
Source: www.stern.de
