🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Half of German companies face labour shortages despite economic stagnation - survey

Published 11/29/2023, 03:34 AM
Updated 11/29/2023, 07:13 AM
© Reuters. A steel worker grinds a steel cast at ‘Friedrich Wilhelms-Huette (FWH) Stahlguss' steel casting firm in Muelheim an der Ruhr, Germany, April 2, 2022. REUTERS/Thilo Schmuelgen

BERLIN (Reuters) - Half of German companies are struggling to fill vacancies due to labour shortages, the DIHK Chamber of Commerce and Industry said on Wednesday, despite stagnation in the euro zone's largest economy.

Germany, like industrialised countries around the world, is facing deep labour shortages, particularly in skilled high-growth sectors.

The proportion of companies facing difficulties hiring was slightly down from the previous survey of 22,000 companies, falling to 50% from 53% in January, but remained elevated.

"The skilled labour situation remains very critical," said Achim Dercks, DIHK's Deputy Chief Executive.

According to the latest estimate, 1.8 million jobs remain unfilled in the German economy as a whole.

"This means that more than 90 billion euros ($98.8 billion)in added value will be lost this year," said Dercks. "That corresponds to more than 2% of gross domestic product."

The industry and construction sectors were the hardest hit by labour shortages, with 54% and 53% of those companies struggling to fill vacancies, respectively.

"Some sectors are not only talking about gaps in skilled labour, but about a general shortage of workers," Dercks said while presenting the report.

The survey showed that eight out of 10 companies expect negative consequences from labour shortages.

Aware of the struggle, the German government passed new legislation this year to attract foreign workers from non-EU countries, which came into force on Nov. 18.

For Dercks, the implementation of the new law will be crucial to fill the workers gap. "This will only happen very gradually," he said.

More than half of the companies see the recruitment of foreign labour and skilled workers as an option to secure skilled labour, the survey showed.

© Reuters. A steel worker grinds a steel cast at ‘Friedrich Wilhelms-Huette (FWH) Stahlguss' steel casting firm in Muelheim an der Ruhr, Germany, April 2, 2022. REUTERS/Thilo Schmuelgen

"What helps in any case is that companies are increasingly turning their attention to the topic and are very open to it," he said. "There is pressure from the business community to make this law a success."

($1 = 0.9113 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.