Klaus F. Zimmermann warns of the pending skills shortage in Germany

German companies are being urged to prepare for pending nationwide demographic changes which will create a shortage of skills in the economy.

Several factors are already limiting the proportion of workers in Germany. Speaking at the Entrepreneur’s Forum in Dortmund, IZA World of Labor’s editor-in-chief Klaus F. Zimmermann warned that Germany will “lose about a million people of working age approximately every three years” due to its slowing birth rate.

Inflexible working hours combined with a scarcity of childcare means that women are largely staying at home. IZA research estimates that more female-friendly working conditions could boost the number of full-time workers by up to 1.5 million.

Immigration of skilled workers may dodge this demographic disaster. However, to maintain the nation’s skill level, qualified migrants would need to relocate to Germany at a rate of 400,000 per year. Zimmermann pointed out that “it is highly questionable” whether the country could support such an influx.

As these trends appear set to continue without intervention, companies in Germany are being advised to redress employment policies now in order to encourage more skilled people into full-time work.

Read more here.

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