Overview

• A new IAB study reports that 84% of German companies are currently affected by a shortage of qualified workers, spanning all major industries.
• Two-thirds of businesses express doubt about their ability to recruit skilled labor in the future, highlighting long-term concerns tied to demographic shifts.
• High wage costs are now a burden for 55% of firms, marking a 12-percentage-point increase since 2022, with absenteeism further compounding operational challenges.
• The construction, hospitality, agriculture, and mining sectors face the most acute shortages, with only 25% of construction firms confident in future hiring prospects.
• Half of the surveyed firms are prioritizing measures such as employee training, professional development, and work-life balance improvements to address the labor crisis.