Majority of Companies Experience Talent Gap Due to Lack of Skilled Personnel in Workforce (84%)

Unveiling the Skills Gap Crisis: 84% of German Businesses Feeling the Bite

Over eighty-four percent of businesses report experiencing a deficit of skilled workforce. - Majority of Companies Experience Talent Gap Due to Lack of Skilled Personnel in Workforce (84%)

Here's the scoop: businesses across Germany are grappling with a skills shortage, and it's not a walk in the park. Research conducted by the Institute for Employment Research (IAB) reveals that a staggering 84% of businesses in the country are currently facing this issue. Michael Oberfichtner, an IAB researcher, succinctly explains, "The skills gap continues to be the most frequently cited concern across sectors."

Joining this list of challenges are high labor costs, absenteeism, and, you guessed it, the skills gap. When asked about the future, two out of three businesses express doubts about their ability to bring in sufficiently qualified personnel, with the construction industry being particularly worried.

So, what's the solution? Well, here's where things get interesting. Over half of the businesses surveyed believe that continuing education, personnel development, and a better work-life balance could help bridge this gap.

But don't start popping champagne corks just yet. About 5% of the 15,000 businesses surveyed expect to have too many staff—mostly in the industry sector. As IAB researcher Ute Leber points out, "The weak external trade and the energy transition are significantly impacting the manufacturing industry."

Last year, 55% of businesses found high labor costs a burden—an increase of 12 percentage points compared to 2022. It's worth noting that businesses in manufacturing, wholesale, and retail complained most about this burden.

Though the labor shortage seems less pronounced in simple tasks—like helper jobs—it's still a problem. One in three businesses anticipates difficulties in recruiting for this segment. Industries hardest hit include hospitality, other service providers, agriculture, mining, and those offering temporary work and security services.

Now, you might wonder, what can be done to tackle this skills gap? IAB hasn't exactly offered specific solutions, but here are a few potential strategies we've stumbled upon:

Potential Solutions

1. AI Training Programs: Implementing AI-supported training programs could help upskill existing employees, filling competency gaps in technology.
2. Strategic Hiring and Immigration: With Germany aiming to recruit 7 million skilled workers by 2035, particularly from countries like India, this strategy addresses the demand for skilled labor.
3. Data-Driven Decisions: Using data from job vacancy surveys and other research tools can help identify trends and needs in the labor market, enabling businesses to make informed decisions about skill development and hiring.
4. Conferences and Research Initiatives: Participating in conferences can provide insights into labor market transformations, helping inform strategies for skills development.
5. Government-Business Collaboration: Developing a comprehensive skills strategy that involves collaboration between the government, businesses, and other stakeholders can help address skills gaps effectively.

If you're looking for IAB-specific solutions, investigating their publications and research reports would be a wise move. Good luck out there, businesses! Stay sharp and keep your eyes open for the skills you need to succeed.

PS: Nuremberg is just a city, folks. It wasn't mentioned in the original article. 😉

Stay tuned for more insights! 🔨💼📈🌐🤝🚀

1. The community is encouraged to consider implementing AI-supported training programs to upskill employees and fill technology-related competency gaps, which could potentially contribute to bridging the skills gap crisis.
2. The average business is doubting their ability to bring in sufficiently qualified personnel for the future, with many sectors expressing concerns, particularly the construction industry.
3. Oberfichtner emphasizes that the skills gap continues to be the most frequently cited concern across sectors, according to the Institute for Employment Research (IAB).
4. As IAB researcher Ute Leber suggests, data-driven decisions, such as those informed by job vacancy surveys and research tools, can help businesses identify trends and needs in the labor market, enabling them to make informed decisions about skill development and hiring.

Read also: