German employers, with 2m jobs to fill, call for labour reforms

GERMAN businesses are struggling to fill job vacancies amid a worsening labour shortage, with about two million unfilled positions across the country, an employer group said on Thursday (Jan 12).

Achim Dercks, president of the German Chamber of Commerce and Industry (DIHK), said the vacancies “resulted in a loss of 100 billion euros (S$143 billion) in potential value creation”.

Some 22,000 German companies were interviewed for the group’s report. A “record figure” of half were found to face difficulty in securing workers.

Particularly sought after was skilled labour. In September 2022, the German government estimated the shortage of skilled workers to be around 240,000.

Two-thirds of companies in the machine tools and automobile industries reported problems finding staff. The two sectors are emblematic of Germany’s economic power.

Over in the industrial sector, 58 per cent of companies also reported a lack of manpower.

For years, Germany has faced a growing labour shortage in sectors such as industry, hospitality, health and construction. This has primarily been due to an ageing population, but the situation has worsened in recent years as a result of the Covid-19 pandemic.

The DIHK called for a change in labour laws to fix the situation. Their demands included 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 in Germany. Recruitment problems as well (are a factor),” Dercks said.

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The group also asked for “(facilitated) labour-based immigration” for recently arrived non-Europeans, particularly Ukrainians. The government has laid out a plan to reform visa policies to attract foreign labour.

In November 2022, Germany’s governing coalition agreed to pursue a points-based system inspired by Canada’s model. AFP