Overcoming the Talent Gap: Nearly 84% of German Businesses Face a Skills Crisis
Businesses grapple with talent scarcity as 84 percent face shortage of skilled workers, the study reveals. - Enterprise Skills Gap: 84% of Businesses Experiencing Staffing Deficit in Necessary Skills
Let's face it, finding the right candidates for your company in Germany isn't a walk in the park. A study carried out by the Institute for Employment Research (IAB) reveals that an alarming 84% of businesses in the region are currently struggling with a skills shortage. Michael Oberfichtner, an IAB researcher, stated bluntly, "The skills shortage remains the most prevalent issue across industries."
Other challenges businesses are grappling with, besides the dearth of skilled workers, include exorbitant labor costs and excessive absenteeism, according to the IAB Business Panel.
If you're wondering whether this issue will persist in the future, well, 66% of the businesses surveyed have their doubts. Theconstruction industry, in particular, shows the most concern, with only a quarter anticipating a smooth ride.
So, what can businesses do to combat this crisis? About half of the companies believe continuing education, workforce development, and a better work-life balance could help tackle the skills gap. However, 5% of the 15,000 surveyed establishments fear they may have too many employees, particularly in manufacturing, due to weak external trade and the energy transition.
Last year, an astounding 55% of businesses felt the weight of high labor costs, an increase of 12 percentage points compared to 2022. The manufacturing industry and retail complain about this burden far more than the average business.
Now, let's talk about simple tasks, like less complicated helper jobs. The labor shortage isn't as pronounced here, but it's still noticeable. One in every three businesses expects a challenge in recruitment for this segment, especially in the hospitality industry, temporary work and security services, agriculture, and mining.
- Germany: A land of challenges for businesses.
- Skills Shortage: The most pressing issue across industries.
- IAB: The research body shedding light on the crisis.
- Future: A leery outlook for companies.
- Solutions: Improving work conditions, developing talent, bridging the skills gap, promoting healthy work environments, and adapting to technological changes.
[1] Source: IAB/ZEW Start-up Panel[2] Source: IAB Research on the connection between work, health, and employability[3] Source: AI skill demand research[4] Source: Vocational training focus among recruitment agencies[5] Source: Research on the mismatch between skills and job vacancies
- The Institute for Employment Research (IAB) identified the skills shortage as the most prevalent challenge for businesses across industries in Germany.
- Reflecting on the research, Michael Oberfichtner from IAB noted that the skills gap is the most pressing issue facing businesses in Germany.
- To tackle the skills shortage, a significant number of companies believe improving work conditions, fostering continuous education, and enhancing work-life balance will play a significant role.
- Despite these measures, some businesses, particularly in the manufacturing sector, fear having an excess workforce due to weak external trade and the energy transition, which may lead to vocational training becoming increasingly relevant for employment.
