Germany Sees Easing Skilled Worker Shortage as Hiring Gap Slows Down

Germany Sees Easing Skilled Worker Shortage as Hiring Gap Slows Down

The difficulty of finding skilled workers has eased slightly for German companies, according to the latest Ifo Institute business survey. 22.7 % of firms now report a shortage of qualified staff, down from 25.8 % in October and the lowest rate in five years. Ifo researcher Klaus Wohlrabe attributes the improvement to a still‑weak economic environment, while noting that the ongoing technological evolution-especially artificial intelligence-continues to reshape the labour market.

The sharpest decline in shortages appears in transport and logistics, where the share of affected firms fell from 42.7 % to 30.6 %. Overall, about one in four service‑sector companies struggles with staffing shortfalls. Legal and tax advisors (58.4 %) and temporary‑staffing agencies (56.6 %) continue to report the highest levels of demand for skilled personnel.

Industry firms report a 16.6 % shortage of qualified workers, a modest drop of 0.5 percentage points from October. In the automobile sector and among manufacturers of electrical equipment, the figure is below 10 %; mechanical engineering firms cite a shortage of around 19 %.

Retail has seen a mild improvement: roughly 18 % of retailers say they cannot fill open positions with adequately qualified staff (21.6 % of retail outlets and 16.2 % of wholesalers). Construction, however, remains stressed, with 30.4 % of firms in the main trade experiencing shortages.

Wohlrabe cautions that the recent decline should not give the impression that structural problems have disappeared. The ageing population and a profound technological shift will likely continue to alter demand for specific skill sets.