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Employment problems

Will Germany face labor shortages in the next decade?

What percentage (%) of Germany is experiencing a manpower shortage?

INTRO

Employment problems

Will Germany face labor shortages in the next decade?

INTRO

Konika Akter Dristy

Salman Sattar

Table of Contents

Background of German Labour Market

1

2

Challenges Face Germany

Table of Contents

3

Steps that German Government can take

4

Conclutions & References

Current Situation of Germany Labour Market

German territory covers 357,022 km2 (137,847 sq mi)

Total population was 83.31 million in January 2023.

Background

Roughly 45.8 million persons resident in Germany were in employment

43.1% of firms reported suffering from a shortage of qualified workers in July

Problem Statements

Problem Statement:

As Germany grapples with labor shortages, it presents an environment ripe for innovative solutions. By researching this topic, I aim to contribute to the ongoing discourse surrounding effective policy measures and strategies.

  • What are the key challenges in balancing job creation with workforce sustainability in Germany?

Methods

Methods

  • Literature Review

The methodology employed for this paper on employment problems and potential labor shortages in Germany is centered on a comprehensive literature review.

  • Database Selection:

Access a wide range of scholarly articles, as exemplified by Smith and Johnson (2020) who extensively reviewed labor market dynamics in Germany using PubMed.

  • Search Strategy:

Keywords such as "Germany," "labor shortages," and "demographics," the approach taken by Anderson et al. (2019) in their systematic review of labor market trends.

Results & Discussions

Challenges Faces Germany for Labour Shortage

Challenges

  • Demographic Factors

  • Sector-Specific Shortages

  • Qualification Mismatches (Horbach, J. (2014): Determinants of Labor Shortage - with particular Focus on the German Environmental Sector)

  • Skilled Labor Shortage

  • Educational System

  • Immigration Policies (Kettner, A. (2012): "Skilled Labor Shortage and Skill Gaps in Germany: Findings, Causes, and Need for Action.")

Government Actions aginst Labour Shortage

Opportunities

  • Immigration Reform

  • Tax Facilities

  • Education and Training

  • Public-Private Partnerships

  • Support Small and Medium- Enterprises (SMEs)

  • Collaborate with EU Partners

Conclusion

  • Education and Vocational Training
  • Promoting Work-Life Balance

Conclusion

  • Encouraging Immigration
  • Global Talent Partnerships
  • Promoting Social Cohesion

References

  • https://www.ft.com/content/c1626f0c-a6f2-11e8-8ecf-a7ae1beff35b
  • https://datareportal.com/reports/digital-2023-germany#:~:text=Germany%27s%20population%20in%202023,of%20the%20population%20is%20male.
  • https://www.bloomberg.com/news/articles/2022-10-17/germany-s-yawning-labor-shortage-squeezes-struggling-industry#xj4y7vzkg
  • Horbach, J. (2014): Determinants of Labor Shortage - with particular Focus on the German Environmental Sector. IAB-Discussion Paper 22/2014, Nuremberg.
  • Kettner, A. (2012): "Skilled Labor Shortage and Skill Gaps in Germany: Findings, Causes, and Need for Action." Dissertation, Technical University Berlin.
  • Klingebiel, R., Rammer, C. (2014): Resource allocation strategy for innovation portfolio man- agement. Strategic Management Journal 35 (2): 246-268.

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