A recent study by the Cologne Institute for Economic Research (IW) indicates a growing impact of Germany’s subdued economic performance on the information technology sector. The analysis reveals a 26.2 percent reduction in the average number of open positions in IT professions in 2024 compared to the previous year.
Currently, 46,431 IT positions remain unfilled – a decrease of 16,500 from 2023. This decline is notably more pronounced in the IT sector than across all qualified professions, which experienced a 4.4 percent reduction in open positions between 2023 and 2024.
IW study author Jurek Tiedemann attributes this significant decrease primarily to the overall weak economic climate. The study found no conclusive evidence linking the decline to the increased adoption of Artificial Intelligence; in fact, the research suggests companies anticipate a “rise” in demand for skilled IT professionals as they integrate AI technologies. However, economic uncertainty is prompting businesses to implement cost-saving measures and postpone investment projects, leading to fewer job openings.
The report also highlights an increase in the outsourcing of IT services as a contributing factor to the reduction in available positions. Roles requiring a Master’s degree or equivalent qualifications have been particularly affected, with a 33.7 percent decrease. The fields of computer science (down 46.2 percent) and business informatics (down 38.2 percent) are experiencing the most substantial declines in open positions.
Conversely, demand for IT personnel in legal & tax advisory services and auditing has grown. 1,770 positions were recently advertised, approximately six times the number seen in 2023. Of the 88 economic sectors analyzed, 56 reported a decrease in open IT positions, while 25 witnessed an increase.
Despite the reduction in available positions, a significant skills shortage persists within the IT sector. The IW estimates that over 13,500 open IT positions remained unfillable in the past year. In computer science alone, seven out of ten open positions could not be filled with suitable candidates.
“Thus, the shortage of skilled workers in these professions remained very tense, despite the significant reduction in open positions” Tiedemann stated. The study utilized data from the Federal Statistical Office and was cross-referenced with the IW’s in-house skilled worker database, which draws on registered unemployment and job vacancy data from the Federal Employment Agency.
