Study: Shortage of skilled workers in Germany widens

If German companies can cover their skilled labor needs, they will be able to produce an additional 49 billion Euro worth of goods and services this year, a recent study shows, citing the importance of bringing in more qualified migrants.

According to the study, prepared by two economists at the German Economic Institute (IW) in Cologne, if the current need for about 573,000 qualified workers is met, production potential could increase by 1.1% this year, and by 2027 the value added could reach 74 billion Euros.

Contrary to actual production figures, production potential is an estimate of the production that would be possible under full operation.

The researchers work with the induction mechanism to identify the skilled worker gap, and they mathematical very conservatively, assuming that every unemployed and suitably qualified person in Germany would find a job, which is not actually the case.

“Because of the assumptions in the calculations, the actual costs of the shortage of skilled workers are likely to be much higher,” the researchers wrote in the analysis.

According to the study, the skilled worker gap has been widening clearly since 2010.

According to the experts, the most important way to reduce the shortage of skilled labor is to bring in more qualified migrants, and he noted that the revised Skilled Worker Immigration Act has opened up new opportunities here.

According to the analysis, in order to enable more women to work, providing more childcare options in daycare centers makes sense.

The experts also spoke of the need for adjustments in the calculation of spousal taxes, and noted that employing older persons could also have a positive impact.