Due to the shortage of skilled workers, the German labor market is facing major challenges.
(Photo: dpa)
Berlin The consequences of the pandemic can still be felt on the German labor market. However, he is well on his way to recovering from the corona crisis. “The German labor market has been shaken by the corona pandemic, but we were able to avert a major quake,” said Labor Minister Hubertus Heil (SPD) on the annual balance sheet of the Federal Employment Agency (BA). “All in all, the development of the labor market in the course of 2021 was good,” said BA boss Detlef Scheele.
Although the number of unemployed has fallen slightly compared to the previous year at a good 2.6 million on average, it is still above the level of the pre-crisis year 2019. The BA is particularly concerned about the continued high number of 977,000 long-term unemployed – that is 300,000 more than December 2019.
Employment subject to social security has developed positively, which in October 2021 was almost 34.4 million employees, higher than ever before. Youth unemployment in Germany fell last year to its lowest level since reunification.
The fact that unemployment and underemployment, seasonally adjusted, fell again in December, although the corona situation is worsening again, fits into the positive picture. However, the pandemic situation would create uncertainties, emphasized Scheele.
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Employers reported short-time work for around 300,000 employees in December, around twice as many as in the previous month. The increase is mainly due to the hotel and restaurant industry.
Labor Minister Heil does not expect any labor market distortions from Omikron
Despite the lack of clarity about the effects of the Omikron variant, Labor Minister Heil does not expect any upheavals on the labor market. It could be that the upswing due to Omikron will be delayed. However, by extending the special rules for short-time working, the government set the course in good time to avoid job losses. Economists also expected that the supply bottlenecks, which are currently still causing production disruptions in the industry, will be overcome in the course of the year.
BA boss Scheele also currently sees no reason to correct the autumn forecast of the Institute for Employment Research (IAB). The BA think tank assumes that the number of unemployed will fall by an average of 290,000 this year compared to the previous year. The number of people in employment is expected to rise by 560,000.
He does not assume that there will be a nationwide lockdown anywhere in Germany, said Scheele. Employment is currently growing at a very dynamic rate. In particular, company-related service providers such as architects and engineers, the healthcare sector and the information and communication industry were looking for personnel.
Many companies are already struggling to meet the demand. In a survey by the associations Die Familienunternehmer and Die Junge Unternehmer, the shortage of skilled workers is at the top of the question at 67 percent when asked about the greatest concerns with a view to the year 2022. “Also because the companies simply do not have the necessary staff, delivery times are being delayed more and more often or orders even have to be rejected,” said family business association boss Reinhold von Eben-Worlée.
Entrepreneurs warn that the shortage of skilled workers must not become a brake on growth
Employer President Rainer Dulger warned that the Ampel Coalition must now tackle the structural challenges on the labor market in order to maintain Germany’s competitiveness. “The focus here is on overcoming the shortage of skilled workers – one of the biggest drag on the German economy.”
Minister of Labor Heil emphasized that the shortage of skilled workers should not “become a brake on growth and progress”. The SPD, Greens and FDP have therefore set themselves the goal of further increasing the number of women in the labor market and the volume of work. In addition to the expansion of childcare, a home office law and the greater relief of families through “everyday helpers” should contribute to this.
The potential of the unemployed should also be better used, and the principle of “training before temporary jobs” should apply to the integration of the long-term unemployed. And in order to be able to master the transformation of the economy, Germany must also “become world champion in further training” and further facilitate the immigration of skilled workers, stressed Heil.
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