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In Germany, there are an estimated two million unfilled jobs across the country and businesses are struggling to fill these posts owing to the acute labour shortage. Businesses claim ‘record figure’ in vacancies caused a massive loss in potential value creation. And, late last year Labor Minister Hubertus Heil also admitted, "For many companies, the search for skilled workers is already an existential issue."
Labour shortage has been a persistent problem in Germany. Over the last few years, sectors including industry, hospitality, health and construction have been seeing a major labour shortage primarily due to an aging population. However, the problem became acute due to the Covid pandemic.
"Skilled labour" is particularly sought after, while 58% of companies in the industrial sector report a lack of manpower. Apart from that, two-thirds of companies in two sectors - machine tools (67%) and the automobile industry (65%) - have also reported problems finding staff.
Achim Dercks, president of the German Chamber of Commerce and Industry (DIHK), said in a press conference that the vacancies "resulted in a loss of 100 billion euros ($108 billion) in potential value creation".

Easier recruitment policy needed foreign workers
To address this problem, DIHK pointed out that labour laws in the country need to be fixed, including 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 for Germany. Recruitment problems as well (are a factor)," Dercks to thenews agency AFP.

The DIHK called for "facilitating labour-based immigration" for non-Europeans, particularly Ukrainians, who have recently arrived in Germany.
The German government, which in September estimated the shortage of skilled workers to be approximately 240,000, has laid out a plan to reform visa policies to attract foreign labour.

In November, Germany's governing coalition agreed to pursue a points-based system inspired by the model in place in Canada. As per the government, the country would need seven million skilled workers by 2035, while experts cite that there is a need for welcoming an extra 400,000 skilled immigrants a year.


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