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The labour market in Germany

Writer's picture: Michael PätzoldMichael Pätzold

The foundation of every state is the education of its youth.

Diogenes of Sinope (c. 400 - 323 BC)


There is already a shortage of skilled workers throughout Germany. If one follows the opinion of some experts, the shortage of skilled workers in Germany is greater than in any other European country. It is possible that by 2030 there will be a shortage of between 3 and 5 million skilled workers. The renewal is in full swing - Germany will increasingly become a country of immigration and more and more international.




One reason for the shortage of skilled workers is that more skilled workers are retiring than qualified young people are coming in. On the one hand, this has to do with demographic change and the fact that the cohorts of young people being born are weaker than those of skilled workers who will retire in the next few years. Almost 6 million professionals with university degrees will retire by 2030. On the other hand, interest in certain professions is also shifting within generations.

This is the case in the health and care sector, in technical professions, but also in the skilled trades and the construction industry.

Finding employees in the skilled trades is becoming increasingly difficult. Many companies are desperately looking for skilled workers, but the labour market does not currently provide enough qualified personnel.


Skilled crafts sector

The skilled crafts sector is actually booming, but the lack of skilled workers is slowing down the sector's growth potential. As a result, orders have to be turned down, which in turn can threaten the future of the businesses. The entire skilled crafts sector is affected by the labour market situation. No matter whether civil engineering or building construction, plumbing, heating, wood processing, building services or road construction. There is a lack of qualified workers and trainees who want to learn the respective craft. Vacancies remain unfilled for a long time and there are only a few applicants for each position. Qualified workers who have learned a trade currently have good job opportunities on the labour market.


Operators of cafés, restaurants and bars also complain that they cannot find enough qualified staff. The Corona crisis has exacerbated this. In times of business closures ("lockdown"), many employees have reoriented themselves professionally. This results in long waiting times for guests and many a catering business even has to close down now and then due to lack of staff. This means that this industry is urgently looking for employees. For anyone who has completed training in the gastronomic sector, there are numerous opportunities to change jobs. But less qualified job seekers also have a chance. Although they lack training and experience, the shortage of employees ensures that establishments are in need of any help they can get. For less qualified but motivated job seekers, this opens up the possibility of getting a job as a lateral entrant.


Technical and scientific professions

There is a shortage of more than 300,000 workers in technical and scientific professions - in short: MINT skilled workers. MINT stands for: Mathematics, Information Technology, Natural Sciences and Technology.

IT workers in particular are in demand everywhere. Here, the shortage has become particularly acute in the last five years. Digitisation will be one of the top issues in all areas of life in Germany in the coming years. Along with climate change, it is also one of the key issues in German politics.




The shortage of skilled workers not only differs by occupational group - there are also regional differences. For example, the economically strong federal states in the south of Germany are particularly affected by the shortage. In Bavaria and Baden-Württemberg, the share of vacancies in shortage occupations is highest at over 85 percent. But also in Thuringia, Lower Saxony and Rhineland-Palatinate more than every eighth job is now advertised in a shortage occupation.


The health sector

The health sector - especially geriatric nursing and nursing care - are strongly affected by the shortage of skilled workers. The need for geriatric nurses in particular will continue to increase as society ages. Politicians and the health sector in Germany continue to look for ways to cope with the shortage of skilled workers. But this will not succeed in the foreseeable future. The need is simply too great. Already today, many positions on the labour market in the health and care sector remain unfilled. In the next ten years, this situation could escalate further. According to expert forecasts, there could be a shortage of almost half a million (!) medical and health professionals by 2030.




The number of clinics and hospitals in Germany has been declining for years. Whereas in 1991 there were still around 2,400, the Federal Statistical Office currently counts only 1,914 clinics. More and more smaller and unprofitable facilities are being merged or closed completely. Private operators have been able to increase their share from 21.7 percent in 2000 to about 37.8 percent of the hospitals in 2019.

Hospital financing in Germany is based on the principle of "dual financing": the operating costs of hospitals, i.e. all costs incurred for the treatment of patients, are financed by the health insurance funds. Investment costs, on the other hand, are financed by the Länder. Accordingly, the Länder decide where a hospital is built, expanded or closed and finance these investment measures.

In 2020, there were a total of around 11,700 old people's homes and nursing homes in Germany. Around 43 percent of the nursing homes were privately run in 2021.

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