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Topic - Securing of Skilled Labour

Safeguarding the supply of skilled labour The challenge of safeguarding the supply of skilled labour

Introduction

Skilled professionals are the key to innovation and competitiveness, to growth and employment, and to prosperity and a good quality of life. In view of demographic change – and also global challenges like the digital transformation – securing a sufficient supply of skilled labour will be one of the most important challenges that lawmakers and the business and science communities will be facing in the decades to come.

Although Germany does not have a nation-wide skills shortage at present, there are bottlenecks in skilled labour which affect certain qualifications, regions and sectors. And demographic change is exacerbating the difficulty. The ageing population will result in a smaller total potential labour force in the coming decades.

Germany does not have a nation-wide skills shortage at present. It is, however, a fact that demographic change is creating a situation whereby companies are finding it increasingly hard to recruit the labour they need. Over the coming decades our society will continue to age and the potential labour force will continue to shrink.

Due to demographic change, the working-age population (20-64 years) will decline by 4.4 million by 2030 and by 11-15 million by 2060 (source: 13th coordinated population forecast).

Even today, 43 per cent of companies are concerned that the skills shortage poses a risk to their business activities; cf. Early Summer 2016 Economic Survey by the Association of German Chambers of Commerce and Industry (PDF: 2,2 MB). The Federal Government therefore aims to continue to boost the labour force participation rate. The immigration of skilled workers and the integration of refugees into the labour market are some of the measures to strengthen the skills base. More and more companies are discovering the advantages of a diverse workforce consisting of people of different sexes, ages and origins, and including people with disabilities. The Economic Affairs Ministry supports small and medium-sized enterprises with this – e.g. with the Centre of Excellence on securing skilled labour.

Four figures on demographic change and skills shortages

1/3
Symbolicon für Wachstumskurve

Increase in the number
of people aged over 65 by 2060

11-15
Symbolicon für Wachstumskurve

million fewer people
will live in Germany by 2060

96
Symbolicon für Arbeiter

of 619 occupations
are currently facing skills shortages

34
Symbolicon für Bürogebäude in Deutschland

percent of companies
already view the skills shortage as a risk

Diagnosis and trends

Lack of skilled labour already making itself felt

Whilst Germany as a whole is not yet suffering from a skills shortage, there are some regions, sectors, and professions that are experiencing a lack of skilled labour. Right now, however, it is proving impossible to fill many vacancies in Germany’s engineering sector, a sector which is so crucial to the success of our economy.

The occupations particularly affected by skills shortages include:

  • Professions requiring a degree: medical practitioners, mechanical and automotive engineers, electrical engineers, supply and waste-management engineers, IT experts/software developers/programmers, STEM disciplines (science, technology, engineering, mathematics).
  • Crafts professions/skilled workers: electricians/electrical installers, milling-machine operators, plumbers, lathe-operators, toolmakers, plastics process workers, pipe fitters, welders, mechanical technicians.
  • Nurses and geriatric nurses.

Regional disparities

In some regions, demographic change is already having a visible impact on the labour market. So far, this is mostly affecting the south and the east of Germany, where the demand for skilled professionals and/or apprentices in some professions is not being met. Labour market scenarios developed based on model calculations have shown that the number of gainfully active persons in east Germany is likely to drop by up to 13 per cent by 2020. In the long term, however, the consequences of demographic change will make itself felt across all sixteen states (Länder).

Unless measures are taken to counter this development, the German labour market in 2025 will have shrunk by up to six million gainfully active persons compared to 2010.

Leveraging potential

Where is the greatest untapped pool of skilled labour?

Greater use can particularly be made of the potential of women, older people, people with an immigrant background, young people without vocational qualifications, and people with disabilities. Diversity is an important element of corporate success. In occupations facing a skills shortage, it is also important to approach qualified professionals from around the world.

Women

The greatest pool of talent with which to meet the skills shortage is offered by women. With a labour force participation rate of more than 72%, Germany is well-positioned. But many women work part-time. The ratio of women in full-time work is higher in almost all the other EU countries. Many women in part-time jobs would like to increase the hours they work. And almost 42% of women aged between 25 and 49 who do not participate in the labour market said that this was because they were looking after children and other relatives.

Of the nearly five million women of working age who are currently not working or looking for a job, the majority are well trained and educated. So it is in the business community’s own interest to make better use of the work and skills offered by women. Here, it is important to have better possibilities to combine family and career.

Older people

Young people and old – all generations will be needed for Germany’s future. Older employees in particular can draw on comprehensive expertise and many years of professional experience. On behalf of the Labour Ministry, ZEW in Mannheim has calculated a skills potential of between 0.6 and 1.1 million people aged between 55 and 64 up to 2025, compared with a scenario for 2025 with a labour participation rate and average working hours at the level of 2013. In recent years, the labour participation rate of people aged between 55 and 64 has risen sharply.

Every company can take targeted measures to benefit from the potential of older people. Age-appropriate design of work, an improved balance between work and private life, more further training for older people, targeted recruitment of older people and proactive health management – all of these are investments which pay off equally for companies, for employees and for Germany as a whole.

People with a migrant background

People with a migrant background also offer a lot of potential. Many thousands of additional workers could come on to the market if people with a migrant background were given more support in terms of integration and training. One aspect of this is the integration of refugees into the labour market. Another is increased immigration of highly qualified professionals from other countries, particularly in occupations facing a skills shortage.

The rules on the immigration of people with vocational qualifications are therefore being relaxed. The orientation of the “positive list” of occupations where there is a skills shortage to regional labour market needs means that qualified professionals from abroad can now work in more than 130 occupations.

Inclusion: recruiting people with disabilities

According to figures from the Federal Employment Agency, some 177,000 severely disabled people would like to work. Many people with a disability have above-average skills, and their ability to work is hardly affected at all by their disability. You can find out more about inclusion on the website of the Centre of Excellence on securing skilled labour (German Version).

Top Germans working abroad

According to estimates, at least 200,000 highly qualified German nationals are currently working in the U.S., Switzerland and other EU countries. It is good to see that German skilled workers enjoy such a great reputation abroad. At the same time, we can do more to try and benefit from this wealth of experience, and encourage these people to make a career in Germany. We need to do more to build a bridge for people returning to Germany. Here, it would be helpful to have greater transparency about services and opportunities for those interested in returning to Germany, and also to give them more support with their return and reintegration.

Apprentice at work symbolizes Vocational training and work; Source: Franz Bischof/Laif

© Franz Bischof/Laif

Qualified Professionals Initiative

Inform, raise awareness, assist

The Qualified Professionals Initiative was launched jointly by the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Labour and Social Affairs, and the Federal Employment Agency. This information and mobilisation campaign provides the public, companies, and qualified professionals with information about the demand for skilled labour and the support mechanisms available. Furthermore, it helps establish new networks and projects, and fosters cooperation. It underpins the Federal Government’s Skilled Workers Concept.

The Qualified Professionals Initiative is about helping companies meet their demand for skilled labour and supporting skilled professionals in marketing themselves on the labour market and in advancing their careers. What is more:

  • it is about informing and educating companies, particularly small and medium-sized enterprises, about the need to recruit and retain skilled professionals and showing them what a future-oriented HR policy can look like.
  • it is about encouraging women, older people, and people with an immigrant background to seek fresh opportunities by (re-)entering the labour market and by earning additional qualifications.
  • it is about fostering regional cooperation between companies, unions, and associations.

There are two internet portals that form a vital part of the Qualified Professional Initiative:

  • The website of the Qualified Professionals Initiative offers a range of useful information and tips for skilled professionals and companies in Germany, including a navigator that brings together professionals’ networks operating across Germany, including their various regional contact points.
  • "Make it in Germany" is a multilingual welcome portal for international skilled professionals. It provides information for skilled professionals who are considering moving to Germany, including information on career opportunities in Germany and details of current job vacancies in professions where there is a skills shortage. Furthermore, some of the international qualified professionals who are already successfully building careers in Germany share some of their personal experiences and explain how they mastered the challenge of living in Germany. Employers in Germany can also find information on how to successfully recruit international skilled professionals.

Partnership for skilled professionals

Working together to leverage potential

In view of the demographic change in Germany, the securing of qualified labour is a central challenge if we are to tackle current and potential future bottlenecks. In the Partnership for Qualified Professionals, government, commerce and trade unions coordinate measures to secure the supply of skilled labour.

All pulling in the same direction

With a view to identifying the existing potential to secure and jointly mobilise the supply of skilled labour, the Federal Government joined together in November 2014 with the social partners, chambers, and business associations to found the Partnership for Qualified Professionals in Germany. The partners include the Federal Ministry of Labour and Social Affairs, the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Education and Research, the Confederation of German Employers’ Associations, the Confederation of German Trade Unions, the German Metalworkers’ Union, the Mining, Chemical and Energy Industrial Union, the Association of German Chambers of Commerce and Industry, the German Confederation of Skilled Crafts, and the Federal Employment Agency.

In their Joint Decleration, the partners have agreed on a range of priority groups, namely women, older workers, and people with a migrant background. In order to better integrate these groups into the labour market in the long term, the partners are seeking to coordinate their measures more closely with one another, and to regularly examine how this action can be developed.

Immigration and a Culture of Welcome

Raising the awareness of qualified professionals in other countries of careers in Germany

Creating a true culture of welcome – including for skilled professionals from around the world – is crucial for the future of our country. If we want skilled professionals from around the world to come and stay in Germany, we need policy makers, civil society, public administration, and companies to establish a true culture of welcome.

To this end, the Federal Government has already initiated some important changes to Germany’s immigration laws. By becoming a more open country in this way, Germany is modernising and adjusting its immigration policy so that it is centred on the needs of the economy.

Fostering integration of people into the labour market and vocational training

Since spring 2016, some 150 refugee recruitment advisors have been supporting small and medium-sized companies in filling their vacancies and vocational training positions with refugees. Across Germany, these advisors organise work placements and job shadowing opportunities for refugees, support them in acquiring the basic skills they need, and find jobs and vocational training positions for them in small and medium-sized enterprises (SMEs). They also advise companies on matters including language training, refugees' residence status, skills, and support services.

There is also the programme for the perfect match, which is tailored to young people from Germany and abroad who do not have refugee status. This programme has proven highly successful in helping companies establish and develop a culture of welcome and integration for the many non-German apprentices and skilled workers who have come to Germany not as refugees.

Hotline for international qualified professionals

The launch of the "Working and living in Germany" hotline marks the first time that the German government has offered a comprehensive, multilingual advisory service for qualified professionals, students, and apprentices who have moved to Germany or are planning to do so. Call +49 30 1815 1111 for information on immigration and visa issues, German courses, job hunting, and the recognition of professional qualifications in Germany.

Recognition of professional qualifications acquired abroad

The rules governing the recognition of foreign professional qualifications were improved in 2012 by the Federal “Act to Improve the Assessment and Recognition of Professional Qualifications Acquired Abroad”. This law creates a legal entitlement to have one’s professional qualifications obtained abroad assessed, to see whether they can be recognised as equivalent to German qualifications.

Furthermore, non-EU nationals with higher-education qualifications can now spend up to six months in Germany to seek employment, provided that they can support themselves for the duration of their stay.

A practical tool: The BQ Portal of the Federal Ministry for Economic Affairs and Energy is the more comprehensive online knowledge and working platform for foreign professional qualifications. It is a tool which the authorities (the professional chambers) can use to improve the assessment of foreign professional qualifications and to make the recognition process uniform and transparent.

EU Blue Card

The "EU Blue Card", which was introduced in August 2012, makes it possible for persons with a higher-education degree who have a specific job offer and come from non-EU countries to come to Germany with their families and work and live here. For more information, please click here.

Electrician at Work; Quelle: Getty Images/altrendo images