Germany's labour crisis: 86% of firms struggle to hire
86% of companies in Germany are facing challenges in finding employees, according to a survey by ManpowerGroup. Notably, three sectors, including energy companies, are expressing concerns about labour shortages. Employers are adopting new strategies to attract candidates.
"Deutsche Welle" highlights that over the past decade, the shortage of skilled workers in Germany has more than doubled.
"Germany is thus at the forefront globally and surpasses the global average of 74%," the report states.
Worker shortages in Germany
The survey conducted by ManpowerGroup, referenced by the German service, indicates that staffing shortages particularly impact the energy sector (92% of reports).
There are also shortages of workers in healthcare and the IT industry (89% each). The consumer goods and services sector reports the least shortage of skilled workers, though shortages still affect 82%.
The situation is worsening because labour market demands are shifting faster than ever before, explained Terry Cade, managing director of Manpower Germany.
He believes the best opportunities to attract employees currently lie with companies that offer tailored packages and promote flexibility.
How are Germans attracting workers?
The survey suggests that German employers are attempting to attract candidates. 27% of companies offer a hybrid work model and flexible hours. Meanwhile, 23% focus on investing in workforce retraining.
- Interestingly, salary increases play a smaller role than expected and have fallen from second to third place in the ranking (21% of responses), Cade noted.
Wave of insolvencies in Germany
However, staffing shortages are not the only challenge for German companies. Many firms are also encountering financial difficulties, as seen in the closure of Langheinrich, a textile manufacturer. The company was founded 193 years ago and entered bankruptcy proceedings last year. No investors were found.
Already last year, the German Chamber of Industry and Commerce presented forecasts indicating that in 2024 there could be over 20,000 business insolvencies.
- Two years of declining economic output are leaving increasingly deep marks on the German economy, admitted Marc Evers, an expert on small and medium-sized enterprises at the German Chamber of Industry and Commerce.
