More than half of German companies report labour shortages

More than half of German companies report labour shortages

BERLIN (Reuters) – More than half Germany‘s companies are struggling to fill vacancies due to a lack of skilled workers, the German Chambers of Commerce and Industry (DIHK) said on Thursday, in the latest sign of growth headwinds belabouring Europe’s largest economy.

The proportion of companies facing difficulties hiring was at its highest ever level, the DIHK found in its survey of 22,000 companies, with 53% reporting shortages.

“We can assume that some 2 million vacancies will remain unfilled,” Achim Dercks, DIHK‘s Deputy Chief Executive, said, with the result that companies were foregoing nearly 100 billion euros’ worth of output.

The labour markets resilience did not mean companies were doing well, he added. Staff shortages, high energy prices and the shift towards climate neutrality were a “dangerous mix” that could lead firms to move production abroad.

“The skilled worker shortage is not only a burden on businesses, but it also jeopardizes success in important tasks for the future like the energy transition, digitization and infrastructure build-out,” he said.

Workers with the relevant skills were growing ever scarcer, he said, including in the manufacturing sectors that are the engine room of the German exporting powerhouse.

The survey found that 67% of electrical equipment manufacturers were unable to fill vacancies and 67% of mechanical engineering companies. In carmaking, 65% of companies reported labour shortages.

(Reporting by Maria Martinez, editing by Thomas Escritt)

NASDAQ, S&P 500, Dow Jones – Stocks Gain Ground Ahead Of CPI ReportEUR/USD Return to $1.08 Hinged on US CPI Report and Jobless ClaimsETH Eyes $1,450 to Bring $1,500 into View on FTX News and US InflationDOGE to Target $0.0820 on Network News and US InflationBTC Fear & Greed Index Jumps to 30/100 on BTC Return to $18,000S&P 500 Price Forecast – Stock Market Rallies Heading Toward CPILoadingLoadingLoading