Germany's skills gap despite high unemployment

A recent study from the Ifo Institute revealed that approximately 23.2% of German companies are experiencing a shortage of skilled labor, marking an increase of more than two percentage points compared to April 2023. However, this is still below the long-term average of 31.7%. The weak economic conditions are limiting the demand for skilled workers, but the shortage is expected to grow as the economy recovers more strongly. Sectors such as telecommunications, tax, and consulting have seen notable increases in labor shortages, with the shortage rate reaching 31.1% in telecommunications, 35% in the paper industry, and 32.6% in construction services. The severity of the shortage varies depending on how well qualifications match job requirements.

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