Germany's workforce crisis: Energy sector hit hardest
According to a survey by ManpowerGroup, 86% of companies in Germany are having trouble finding employees. Notably, three sectors, including energy companies, are reporting labor shortages. Employers are implementing new strategies 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, as cited by the German service, indicates that staffing shortages are particularly affecting the energy sector (92% of reports).
There are also worker shortages 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, though shortages still affect 82%.
The situation is worsening because labor market demands are changing faster than ever before, explained Terry Cade, managing director of Manpower Germany.
In his opinion, companies that offer individualized packages and promote flexibility currently have the best chances of attracting employees.
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, exemplified by the closure of Langheinrich, a textile manufacturer. Founded 193 years ago, the company initiated bankruptcy proceedings last year. No investors were found.
Last year, the German Chamber of Industry and Commerce presented forecasts indicating that there could be over 20,000 business insolvencies in 2024.
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.
