Germany Immigration: Record 2 million vacancies available in hospitality, health and construction sectors
Monday 23 January 2023 8:23 AM UTC
Germany Jan 23: Labour shortage has been a persistent problem in Germany. Over the last few years, sectors including industry, hospitality, health and construction have been seeing a major labour shortage primarily due to an aging population. However, the problem became acute due to the Covid pandemic.
“Skilled labour” is particularly sought after, while 58% of companies in the industrial sector report a lack of manpower. Apart from that, two-thirds of companies in two sectors – machine tools (67%) and the automobile industry (65%) – have also reported problems finding staff.
Achim Dercks, president of the German Chamber of Commerce and Industry (DIHK), said in a press conference that the vacancies “resulted in a loss of 100 billion euros ($108 billion) in potential value creation”.
To address this problem, DIHK pointed out that labour laws in the country need to be fixed, including easier recruitment of foreign workers, a reduction of bureaucracy, greater participation of older people in the labour market and better work-life balance to attract and retain employees.
“The energy crisis and supply chain problems are not the only risk factors for deindustrialisation for Germany. Recruitment problems as well (are a factor),” Dercks to thenews agency AFP.
The DIHK called for “facilitating labour-based immigration” for non-Europeans, particularly Ukrainians, who have recently arrived in Germany.
The German government, which in September estimated the shortage of skilled workers to be approximately 240,000, has laid out a plan to reform visa policies to attract foreign labour.
In November, Germany’s governing coalition agreed to pursue a points-based system inspired by the model in place in Canada. As per the government, the country would need seven million skilled workers by 2035, while experts cite that there is a need for welcoming an extra 400,000 skilled immigrants a year.