Germany's £41.8 billion struggle: The urgent hunt for skilled workers
Analysis from the German Economic Institute reveals that German companies incur annual losses of £41.8 billion due to a worker shortage. The authors warn that the situation is expected to worsen in the upcoming years.
13 May 2024 15:02
DW.com reports that the German Economic Institute's conclusions draw on job vacancies reported to employment offices, highlighting that companies urgently seek approximately 573,000 skilled workers unavailable in the market.
Filling these vacancies could boost businesses' production potential by £41.8 billion. The actual financial impact, however, might be even greater.
Search for over half a million workers intensifies
The analysts forecast an escalating problem as the workforce from demographic peaks begins to enter retirement. Alexander Burstedde, one of the study's authors, explained in DW.com that extending the working lives of older employees would be highly effective.
In light of these findings, the Institute advocates for increased skilled immigration and improved access to childcare to encourage women's greater participation in the workforce.
It's essential to remember that advertised salary figures may not always reflect the actual take-home pay. Workers often live in dormitory-style accommodations with communal toilets and showers, for which they can be charged about £59.64 a week. Additionally, they are responsible for their meals.
Rainer Dulger, head of the German Employers' Association, criticizes the current German migration policy for its inability to attract sufficient foreign workers. He points out that in return, Germany has to offer one of Europe’s most complex languages, a disastrous housing market, slow bureaucracy, and limited childcare options with inflexible hours.
