The occupations particularly affected by skills shortages include:

• Graduate occupations in the field of medicine, mechanical and automotive engineering, electrical engineering, supply and waste management, IT and software development/programming, STEM disciplines (science, technology, engineering, mathematics).
• Crafts trades: electricians/electrical installers, plumbers, lathe-operators, toolmakers, plastics process workers, pipe fitters, welders, mechanical technicians.
• Care services: Healthcare and care for the elderly.

A recent study (02/2017) entitled ‘The corporate skills gap: regional supply of skilled labour and mobility’ (in German) and conducted by the Centre of Excellence on Skilled Labour (KOFA) has shown that it is now commonplace for companies in many regions to have difficulty recruiting the staff they need. Between 2011 and 2016, the share of jobs advertised for professionals whose skills-set is short in supply rose from 4 in 10 to 1 in 2. In many regions, the problem is exacerbated by the fact that many companies’ workforces are of an advanced age and that there are not enough young people with the desired qualifications. In fact, the number of vacant places for vocational training is also on the rise, both in the south of Germany, the country’s economic powerhouse, and in the east, which is hit hardest by demographic change.

Regional disparities

In some regions, demographic change is already having a visible impact on the labour market. The shortage of skilled labour is felt the most in Germany’s south, the country’s economic powerhouse. A recent study conducted by the Centre of Excellence on Skilled Labour (KOFA) found that two thirds of all jobs advertised in Bavaria and Baden-Württemberg are professionals whose skills-set is in short supply. And the situation is not improving. Over the past five years, the east of Germany has also been hit hard by a skills gap.

This finding was also corroborated by the 2016 IAB Establishment Panel Survey for eastern Germany (in german) According to this study, 36 per cent of the skilled jobs advertised in the first semester of 2016 were still vacant at the date of survey. This means that the share of jobs companies were unable to recruit for was once again higher in eastern Germany than in western Germany (2016: 30 per cent). In addition to this, approx. one third of vocational training places also remained vacant as there were no suitable applicants.

At the same time, however, it is also important to note that – even within the same German state (land) – shortages are limited to certain districts. The Centre of Excellence on Skilled Labour (KOFA) has created an interactive map (in german) showing the regions in Germany where companies are having the most difficulty recruiting suitable candidates, as a share of all the vacant posts available in the region.

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. For more details, consult the Skills Gap Analysis by the Federal Employment Agency (in German) and the study by the Centre of Excellence on Skilled Labour (KOFA) (02/2015)(in german) entitled “Corporate skills shortages: gender differences”(in german).

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. . On the one hand, this means integrating refugees into the labour market. On the other hand, it also means that we want to attract 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.

The Economic Affairs Ministry is leading by example. Around 9% of the ministry’s workforce are people with disabilities – that’s well above the legal requirement of at least 6% (current as of February 2018).

You can find out more about inclusion on the website of the Centre of Excellence on securing skilled labour (in German).

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.

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 Professionals 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 find information on how to successfully recruit international skilled professionals, whilst professionals abroad can inform themselves about visa issues, job offers and the various sectors in the German economy. Since June 2012, more than 15 million users from over 200 countries have visited the site.

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 Declaration, 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.

In many countries across the globe, skilled labour is in short supply. This means that neither local businesses nor foreign investors, for instance from Germany, are in a position to harness the full potential offered by the relevant markets. The ‘Skills Experts’, who are based at some of Germany’s Bilateral Chambers of Commerce and Industry, want to address this issue by supporting German companies willing to offer their own training under the German-style dual vocational training system. Learn more.

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 170 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 language 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.

Making the best possible use of immigrants

In order to improve the integration of immigrants into the training and labour market, some 170 refugee recruitment advisors are 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, but not as refugees.