Germany's labour crunch: Energy sector hit hardest
According to a survey by ManpowerGroup, 86% of companies in Germany have difficulty finding employees. Specifically, three sectors, including energy companies, are facing labour shortages. Employers are implementing new solutions to attract candidates.
"Deutsche Welle" highlights that over the past decade, the shortage of skilled workers in Germany has more than doubled.
"Germany is therefore at the forefront worldwide and exceeds the global average of 74%," the report states.
Worker shortages in Germany
The survey conducted by ManpowerGroup, which is cited by the German service, indicates that staffing shortages particularly affect the energy sector (92% of reports).
There are also shortages of workers in healthcare and the IT industry (89% each). The lowest shortage of skilled workers is reported by companies in the consumer goods and services sector, but shortages still affect 82%.
The situation is worsening because labour market demands are changing faster than ever before, explained Terry Cade, managing director of Manpower Germany.
In his opinion, the best chances of attracting employees currently belong to companies that offer individualized packages and promote flexibility.
How are Germans attracting workers?
The survey indicates that German employers are trying to lure candidates. 27% of companies offer a hybrid work model and flexible hours. Meanwhile, 23% focus on investing in workforce retraining.
- Interestingly, salary increases play a smaller role than expected and have dropped from second to third place in the ranking (21% of indications), Cade pointed out.
Wave of insolvencies in Germany
However, staffing shortages are not the only challenge for German companies. Many firms are also facing financial problems, as exemplified by the closure of Langheinrich, a textile manufacturer. The company was founded 193 years ago and initiated bankruptcy proceedings last year. No investors were found.
Already last year, the German Chamber of Industry and Commerce presented forecasts indicating that in 2024 there could be over 20,000 business insolvencies.
- Two years of declining economic production are leaving increasingly deep marks on the German economy, admitted Marc Evers, an expert on small and medium-sized enterprises at the German Chamber of Industry and Commerce.
