Germany’s companies are currently experiencing the skilled labor shortage to a lesser extent, according to the Ifo Business Climate Index, released on Monday. While 28.3% of firms still struggle to find qualified workers, this is a decrease from the 31.9% reported in October.
“The weak economy is currently dampening the demand for qualified workers, so the skilled labor shortage is being felt less intensely” said Ifo researcher Klaus Wohlrabe, who also warned, “The demographic challenge remains a significant one and in the long term, the shortage of skilled workers will likely increase again.”
The skilled labor shortage remains pronounced in some sectors, particularly in the service industry, where 35.1% of companies face difficulties in finding qualified workers. In the fields of law and accounting, as well as in economic consulting, a staggering 75% of firms cannot find sufficient qualified staff. Even temporary and personnel agencies are affected, with 62% of them struggling. In the hospitality industry, the situation is a bit better, with around 42% of companies reporting difficulties.
In the manufacturing sector, despite some companies adopting a more cautious or restrictive approach to personnel planning, still around 18% of firms cannot find enough skilled workers. The situation is particularly tense in the food industry (27%), the machinery manufacturing sector (23%) and the furniture industry (23%).
The skilled labor shortage also persists in the retail and construction sectors, with more than one-fifth of companies in these sectors reporting difficulties in filling qualified positions.