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Labour shortages ease in Germany’s economy, survey shows
Global Banking & Finance Review®
Company
By Maria Martinez
BERLIN (Reuters) – Fewer German companies than in the previous year are struggling to fill vacancies due to labour shortages, the DIHK Chamber of Commerce and Industry said on Thursday, in what shows a resilient labour market that is starting to feel the impact of economic weakness.
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 down to 43%, a DIHK survey of 23,000 companies showed, falling from 50% in the previous year.
The number of people out of work in Germany rose in November to 2.86 million, approaching the 3 million mark.
On the one hand, the labour market is starting to feel the impact of economic weakness. Unemployment is seen edging higher this year to 6.0% from 5.7% in 2023, according to government forecasts.
On the other hand, the shortage of skilled workers remains high and many companies are having difficulty finding employees due to a classic mismatch: companies that want to hire are looking for different qualifications than those available, DIHK said in its report.
The proportion of companies that cannot fill vacancies fell to 43% in the industrial sector from 54% last year.
“High energy costs, economic policy uncertainties that impact investment decisions, and intense international competition pose great challenges for companies,” said Achim Dercks, DIHK’s Deputy Chief Executive. “This dampens the demand for personnel and at the same time reduces labour shortages.”
In construction, 53% of companies reported difficulties in filling positions, and in civil engineering it is even significantly more, at 61%.
More than four out of ten companies also cannot fill vacancies in the service sector, the survey showed.
(Reporting by Maria Martinez; Editing by Chizu Nomiyama)
Unemployment refers to the situation when individuals who are capable of working are unable to find a job. It is often expressed as a percentage of the total workforce.
The labour market is the supply and demand for labour, where employees provide the supply and employers provide the demand. It plays a crucial role in determining wage levels and employment rates.
Skilled workers are individuals who possess specialized knowledge or abilities in a particular field, often requiring training or education. They are in high demand in various industries.
Economic weakness refers to a decline in economic activity, characterized by reduced consumer spending, lower production levels, and rising unemployment rates.
A survey in this context is a systematic method of collecting data from a sample of individuals or companies to gather insights about employment trends, challenges, and economic conditions.
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