According to a recent study by the Institute of the German Economy (IW Köln), the German retail industry has seen a decline in employment for the first time in many years, with many companies still struggling to fill sales positions. The study, published in the Donnerstagsausgaben of the Funke-Mediengruppe, found that the number of employees in the retail sector decreased by around 1.5 percent in 2024, following a prolonged period of growth.
Despite a decline in employment due to the economic downturn, the skills shortage in the retail sector remains a central problem, the study notes. In 2024, a total of 26,929 open positions could not be filled with qualified unemployed workers, although this is a decrease from the previous high of 39,369 in 2022. The situation remains tense, with two-thirds of the skills gap affecting employees with completed vocational training and the majority of the gaps occurring in sales positions without product specialization and in sales management.
Experts at the IW Köln, including study author Franziska Arndt, point out that the challenging economic situation is reflected in the decline of employment in the retail sector, while the skills shortage persists. The study’s authors also predict that the skills situation will worsen with economic recovery and demographic change and recommend that companies invest in training, attractive working conditions and targeted recruitment of new entrants, as well as the retraining of unqualified workers. The report also suggests that the retail industry should take new steps in youth recruitment, improve the matching of job seekers and job openings and make the profession more attractive. Furthermore, the study recommends that older employees be retained in the workforce beyond retirement age.