Top 5 skill shortage sectors in Germany for 2021

Germany, according to studies will face a skills shortage of 3 million workers by 2030. The reasons for this include an increase in the number of aged citizens and the decreasing birth rate.

Due to the skill shortage, certain regions and sectors are already finding it difficult to fill certain positions.  Companies in southern and Eastern Germany are facing a skill shortage and there is a shortage of workers in the field of STEM and health-related occupations.

Studies predict that 352 out of 801 occupations will face a skills shortage. The affected sectors will include engineering, healthcare, and IT sectors. There will be a shortage of skilled workers with vocational qualifications. Occupations that will be impacted by skills shortage include:

• Medical and healthcare service professionals
• Engineering professionals (mechanical, automotive, and electrical engineering), software development/programming, supply and waste management, STEM-related fields
• Electricians, plumbers, pipefitters, toolmakers welders, etc.
• Elderly care professionals

Despite the fact that Covid-19 appears to have aggravated the situation, the German government has been working to reduce the skills gap for years. The German government proposed a law in 2019 to make it simpler for workers with vocational skills to come to Germany. The Skilled Immigration Act went into effect in March 2020, the same month that the country went into its first national Covid-19 lockdown. According to the KfW-ifo Skilled Labour Barometer, roughly 30% of German enterprises were affected by labor shortages at the time. With this act, German firms will be able to hire talented workers from abroad who have completed the requisite occupational training, which must include at least two years of experience. Until now, if firms were required to hire such individuals, the occupation had to be listed on a shortage occupations list. This made it impossible for qualified workers to immigrate, and employers were unable to hire them. Restrictions on employing foreign employees in short-term occupations will no longer be applicable if the act is passed. Here are the top five sectors that face a skill shortage in 2022.

Here is a detailed account of the skill shortage in various sectors.

1. Medical professionals

Germany is expected to have a shortage of medical professionals in the coming years. Individuals with a medical degree from abroad can receive a license to practice medicine here. Both EU and non-EU applicants can receive a license to practice in Germany. But in Germany, their degree has to be equal to the medical qualification required by local authorities.

2. Engineering professionals

• There would be strong career opportunities for those with a university degree in any of these engineering areas. The below fields of engineering are expected to face a skills shortage:
• Structural engineering
• Computer science engineering
• Mechanical engineering
• Electrical engineering
• Automotive engineering
• Telecommunications

3. MINT – Mathematics, Information technology, Natural sciences, and Technology

• Individuals with degrees in mathematics, information technology, natural sciences, and technology (MINT) will have good job opportunities.
• As for the field of Information Technology, there were 124,000 IT positions that were vacant. This shortage has doubled in the past two years. It is expected to continue in the coming years as well.

4. Skill shortage in non-specialized areas

• Germany will have a skill shortage in fields that do not require specialized qualifications such as nursing, industrial mechanics and retail sales.
• Industrial mechanics: There will be a skill shortage for professionals in machine engineering, industrial mechanics, and operational technology.
• Retail Salespersons: There will be a demand for trained retail sales professionals and sales assistants.

5. Nurses and eldercare professionals: There will be a demand for professionals who have completed the required training. There will be opportunities in the field of healthcare, emergency medical services, elderly care and obstetrics.

The CEDEFOP report predicts that there will be demand for professionals in science, engineering, business, healthcare, and teaching. 25% of jobs are expected to be for high-level professionals in these fields. 17% of jobs are expected to be for technicians while 14% of jobs are expected for clerical support professionals.

Employment growth

As for employment growth in the next ten years, the highest growth is expected in farm and related labor. The country will witness employment growth in the services sector like professional, administrative or financial services.

According to a report by CEDEFOP, the fastest increase in jobs will be in real estate and telecommunications operations. However, the highest increase will be for human health activities and other rental retail sectors.

The jobs with the highest expected total job openings (including new jobs and replacements) will be for professionals from business and administration and personal care and sales care workers.