- The scarcity of proficient workforce negatively impacts.
The shortage of competent employees has slightly decreased from businesses' point of view. As per the latest ifo business climate survey, approximately 34% of corporations are struggling with a lack of trained personnel, which was 35% in April. Ifo analyst Klaus Wohlrabe explains, "The current sluggish economy is also curtailing the demand for skilled workers."
A fourth of businesses in industry, retail, and construction reported staffing issues. The service sector, however, experiences the most strain. In logistics, nearly two-thirds of companies are on the hunt for suitable candidates. The situation is similar for temp agencies, legal and tax advisors, and auditors.
Germany's economy is on the decline, with a 0.1% drop in GDP during the second quarter. Unemployment also increased to 2.8 million in July, as reported by the Federal Employment Agency. Meanwhile, the number of job vacancies decreased to 703,000. However, due to demographic changes, the scarcity of skilled workers is expected to persist and even intensify, according to Wohlrabe.
The European Parliament expressed concern about the persistent skill shortage in various sectors across Europe. Despite the slight improvement in the percentage of businesses dealing with a lack of trained personnel, the European Parliament emphasized the need for long-term solutions to address the expected intensification of the skilled worker scarcity due to demographic changes.
