The German economy will lose 49,000 million euros in revenue this year from companies due to a lack of qualified labor, according to a study presented this Sunday by the German Institute for Economic Research (IW), close to the business community.
In 2023, there were 570,000 unfilled vacancies in Germany, despite record employment of 45.9 million workers, noted the IW in a statement.
Since the shortage of qualified employees will worsen with the retirement of the most prolific generations – known as ‘baby boomers’ – it is expected that the lost production potential will increase and by 2027 its cost to the German economy could already amount to 74,000 million euros.
To reverse the situation, it is necessary to facilitate the immigration of qualified workers, pointed out the IW, which referred to the initiatives promoted by the Government in this regard, for example in the area of recognizing foreign qualifications.
In addition, the Institute pointed out the need to increase the participation of women in the labor market by improving the offer of childcare and eliminating tax incentives for staying at home.
“It would be especially effective for older workers to work longer”, said the author of the study, economist Alexander Burstedde.
“Companies could retain their more experienced workers with corresponding offers,” he said.
