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The shortage of skilled workers in Germany is constantly reaching new record levels. The effects are particularly noticeable in the IT sector: According to the industry service Bitkom, around 149,000 positions for IT experts are currently unfilled.
This alarming figure highlights the scale of the problem, which affects not only the economy but also public administration. Given this situation, the question arises as to what causes this deficiency and what solutions are possible to counteract it.
In this article we take a closer look at the various causes of the shortage of skilled workers, analyze the resulting consequences and discuss potential solutions.
The shortage of skilled workers in the IT sector in Germany is a very complex phenomenon that is driven by a variety of factors. Let's take a closer look at the most important aspects:
Demographic change plays a major role in the shortage of skilled workers. The baby boomer generation is reaching retirement age, while at the same time fewer young people are entering the labor market. This shift is leading to an increasing gap between supply and demand in the labor market.
Although the number of graduates in computer science has increased slightly in recent years, the overall willingness to train remains too low. Many young people do not decide to study or train in the MINT subjects (mathematics, computer science, natural sciences and technology).
The dropout rate in these courses is consistently above 50 percent. That was the headline in mid-2022 Handelsblatt: Every second MINT student drops out - Germany is running out of young tech talent.
Women in particular are underrepresented in these areas, which further limits the potential of qualified specialists.
Companies complain about too many regulations and bureaucratic hurdles that make the job market unattractive for skilled workers. Particularly in the IT industry, filling vacancies often requires special permits and lengthy visa procedures if skilled workers are to be recruited from abroad. These bureaucratic obstacles slow down the hiring process and make it difficult to integrate international professionals.
Another problem is the discrepancy between applicants' salary expectations and what companies are willing to pay. Many applicants have salary expectations that do not match the company's structures. In addition, the applicants' professional qualifications often do not match the requirements of the positions. This applies to both technical skills and necessary soft skills required for the respective position.
Although the importance of further training is recognized, many companies lack a systematic training strategy. Without continuous training, existing skilled workers cannot stay up to date with the latest technological developments.
This means that employees' skills quickly become outdated and they are no longer able to meet the demands of the market.
Another factor is the lack of attractiveness of many professions that suffer from a shortage of skilled workers. The working conditions are often not attractive enough to attract young talent - especially internationally. These include rigid working hours, limited opportunities for mobile working and an inadequate work-life balance. Companies must make efforts to make these professions more attractive and thus motivate more young people to pursue these career paths.
The shortage of skilled workers has far-reaching effects on the economy and even on society. Companies and public administrations are feeling the consequences of this shortage in many ways.
One of the most serious consequences of the shortage of skilled workers is production losses. If companies cannot find enough qualified employees, they cannot fully utilize their production capacities.
This leads to a reduction in productivity and in the long term can affect the growth and competitiveness of companies internationally. In addition, innovation processes are slowed down or even stopped because the necessary specialists are missing to advance new projects and developments.
According to various estimates and calculations, an unfilled position costs the employer between €29,000 and €73,000.
Companies are under increased competitive pressure as they have to work intensively to find the few skilled workers available. This often leads to a “war for talent,” with companies offering high salaries and benefits to attract and retain the best employees. Small and medium-sized companies have a particularly difficult time in this competition because they often cannot keep up with the resources of large corporations.
The lack of skilled workers leads to a higher workload for existing employees. They often have to take on additional tasks and work longer hours to fill the gaps. This can lead to a deterioration in working conditions and work-life balance, which in turn affects employee satisfaction and motivation. In the long term, this can lead to higher turnover and an increase in sick days.
A lack of skilled workers leads to delays in projects and services. Companies cannot meet agreed dates and deadlines, which leads to dissatisfaction among customers and clients. Such delays can have serious consequences, particularly in the IT industry, where quick and flexible solutions are required.
The skills shortage also has broader economic and social impacts. Economic performance is impaired because fewer products and services can be provided. This leads to lower economic growth and increased dependence on international skilled workers. In addition, the shortage of skilled workers has social consequences, such as an unequal distribution of workloads and a growing gap between well-trained specialists and less qualified workers.
Der Spiegel predicts in April 2024: There could be a shortage of more than 660,000 IT specialists by 2040.
The future prospects for the shortage of skilled workers in Germany are absolutely worrying. In the IT industry in particular, it is clear that the need for skilled workers will increase dramatically in the coming years.
The current number of 1.136 million IT specialists could easily increase to 1.256 million, provided that the current measures are continued. However, this slight increase of around 120,000 skilled workers is far from enough to cover future needs.
A comparatively low average age in IT professions may seem positive at first glance. While 50.5 percent of current employees in the economy as a whole will retire by 2040, this figure is only 32.5 percent in IT professions. However, this initially advantageous starting position means that demographic developments will hit the IT industry even harder after 2040. The measures to combat the shortage of skilled workers must therefore be intensified now in order to be able to counteract it in the long term.
The need for IT specialists will increase sharply by 2040. The current need is 1.29 million, but by 2040 it will increase to 1.92 million. This corresponds to an increase of around 630,000 skilled workers. This enormous increase makes it clear that the current measures to train and recruit IT specialists will not be sufficient. Politics and business are required to develop innovative and sustainable strategies to close this gap.
In view of the alarming forecasts and the current situation, companies and politicians must take a variety of measures to counteract the shortage of skilled workers - and preferably yesterday! Here are some of the main approaches:
In order to secure the next generation of IT specialists, it is crucial that there is a focus on MINT subjects (mathematics, computer science, natural sciences and technology) in schools. Educational programs should specifically aim to stimulate and promote interest in these areas. This also includes initiatives that encourage girls and young women to pursue technical and scientific careers.
Attractive working conditions are a key factor in attracting and retaining skilled workers. Flexible working hours, opportunities for mobile working and a good work-life balance are of fundamental importance. Companies that offer these conditions have a better chance of recruiting qualified employees and retaining them in the long term.
Further training plays a major role in keeping existing skilled workers up to date and providing them with the necessary skills needed in a rapidly changing world of work. Companies should develop strategic training programs and provide their employees with the time and resources to participate in these programs.
The reduction of bureaucratic obstacles, particularly in the area of recruiting international skilled workers, has an important impact. A simplified and digitalized procedure for issuing visas as well as faster recognition of foreign qualifications can make access to the German labor market easier and thus reduce the shortage of skilled workers.
The integration of international specialists must be supported through targeted programs. This includes language courses, cultural integration offers and assistance with finding accommodation and family reunification. A positive and supportive environment can help international professionals settle in Germany long-term and continue their professional careers here.
Artificial intelligence (AI) can also play a role in alleviating the skills shortage. Around half of companies believe that AI can help address the shortage. AI can help take on standard tasks, promote individual training and support IT specialists in programming. The use of AI could therefore help to increase efficiency and productivity and reduce the need for human specialists.
The shortage of skilled workers, particularly in the IT sector, represents a significant challenge for the German economy. There are currently 149,000 IT positions unfilled, and by 2040 there could be a shortage of over 660,000 IT specialists. The causes are demographic change, low training numbers and bureaucratic hurdles.
In order to remedy this deficiency, politicians and companies must act together. Important measures include the promotion of MINT subjects, better working conditions, more intensive training and the reduction of bureaucratic hurdles. The integration of international specialists and the use of artificial intelligence can also help.
Only through targeted and immediate measures can the shortage of skilled workers be combated sustainably in order to secure the future of the German economy. In the meantime, it's best to let us fill your vacancies.
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