Germany's Skilled‑Worker Shortage Eases to Five‑Year Low, but AI and Aging Keep Pressure, Ifo Says
Economy / Finance

Germany’s Skilled‑Worker Shortage Eases to Five‑Year Low, but AI and Aging Keep Pressure, Ifo Says

Finding skilled workers has eased for German companies, according to the Ifo Institute’s latest business climate survey. The proportion of firms reporting a shortage fell to 22.7 % from 25.8 % in October-its lowest level in five years. Ifo researcher Klaus Wohlrabe notes that a weak economic outlook still plays a role, but the ongoing technological shift-especially artificial intelligence-continues to reshape the labour market.

The most pronounced improvement appears in transport and logistics, where the share of firms affected dropped from 42.7 % to 30.6 %. Overall, about one in four service providers complained of lacking staff. Legal and tax advisors (58.4 %) and temporary‑employment agencies (56.6 %) still frequently face a lack of qualified workers.

In industry, 16.6 % of companies report a shortage, a half‑percentage‑point lower than in October. The automotive sector and manufacturers of electrical equipment both see rates just below 10 %. In machine building, the figure is about 19 %.

Retail has also seen a modest improvement: roughly 18 % of firms struggle to fill open positions (21.6 % in retail, 16.2 % in wholesale). By contrast, the construction sector remains heavily affected, with 30.4 % of firms reporting shortages.

Despite the overall decline, Wohlrabe warns that structural challenges persist. “The aging population combined with a profound technological shift will continue to alter demand for specific qualifications” he said.