A recent study by the Cologne Institute for Economic Research (IW) indicates a growing impact of Germany’s subdued economic performance on the information technology sector. According to the study, the number of open positions in IT professions decreased by 26.2 percent in 2024 compared to the previous year.
Currently, 46,431 IT positions remain unfilled – a reduction of 16,500 compared to 2023. This decline is notably sharper within the IT sector than across all qualified professions, which experienced a decrease of only 4.4 percent in open positions between 2023 and 2024.
IW study author Jurek Tiedemann attributes the significant reduction within IT primarily to the weaker economic climate. The study finds no demonstrable link between the decline and the increased adoption of artificial intelligence, suggesting that companies anticipate a “rise” in demand for skilled IT professionals as a result of AI implementation. However, economic uncertainty is prompting businesses to implement cost-saving measures and postpone investment projects, thereby reducing recruitment.
The study also points to the relocation of some IT services abroad as a contributing factor to the decrease in open positions. The most significant reductions are observed in positions requiring a Master’s degree or equivalent qualification, down 33.7 percent. This is particularly pronounced in computer science (down 46.2 percent) and business informatics (down 38.2 percent).
Conversely, demand for IT personnel in legal and tax advisory services, as well as auditing, has increased. Currently, 1,770 positions are advertised in these areas, approximately six times more than in 2023. Across 88 examined economic sectors, the number of open IT positions decreased in 56, while an increase was seen in 25.
Despite the decrease in advertised positions, a significant shortage of skilled IT professionals persists. The IW calculates that over 13,500 open IT positions remained unfillable in the past year, with seven out of ten open positions in computer science alone remaining vacant.
“Despite the noticeable decline in open positions, the shortage of skilled workers in these professions remained very tense” Tiedemann stated. The study was based on data from the Federal Statistical Office linked with the IW’s own skilled worker database, which utilizes registered unemployment and job vacancy data from the Federal Employment Agency.