Big Data | D&I | Labor Market Index

Dr. Sandra Zimmermann

Head of International Social Policy

Dear Readers,

The Economic Summit Germany, Berlin HR Exchange, HR Innovation Day – I had the opportunity to speak at a number of events in recent weeks and to engage with representatives from business, science, and politics. My key learning from these events is that we have to move away from short-term approaches. Instead, we need to harness the power of labor market data to develop long-term solutions to acute workforce shortages. We need a shift in thinking toward long-term strategies that set the course now for the labor market of the future. How can we work together to shape a successful future of work? Read on to discover more in this edition of WifOR Insights: Labor Market. Happy reading!

Best wishes,

Enhance strategic HR planning through Big Data Skills Analysis

From data scientists and robotics engineers to diversity managers and sustainability consultants, many jobs considered niche a few years ago now remain unfilled in companies for months on end. A Big Data Skills Analysis enables HR managers to proactively identify the key skills for (future) job shortages. The resulting skill profiles and transition pathways provide an evidence-based foundation for decision-making to develop recruitment and HR strategies. This article explains how companies can use scientific data to strategically develop, recruit, and retain personnel – in order to counteract the shortage of skilled workers.

D&I Impact Study: The Social Impact of Diversity and Inclusion

Diversity, Equity, and Inclusion (DEI) have been shown to promote employee retention, innovation, and productivity. Scientific data helps HR managers to embed these principles in their corporate culture over the long term. Our recent case study in cooperation with Novartis on the impact of D&I on employee well-being is an example of this (recommended by the Capitals Coalition). Among other aspects, the study analyzes the correlation between D&I and absenteeism or turnover to provide a framework for two impact pathways to measure and monetize social impact.

FRAX Labor Market Index: Here's what we can learn from the latest data

Amid current changes on the German labor market, WifOR’s Labor Market Index (FRAX) falls to a five-year low. This highlights the challenges of the Labor Market 5.0: despite some positive individual developments in access to training opportunities, deteriorating work conditions and the ongoing negative income trend prevail. In the first quarter of 2023, just under 2.53 million people were registered as unemployed – an increase of over 200,000 year-on-year. The opportunity to entry improved by 4.1 percentage points compared to the first quarter of 2022, largely due to the decreased share of long-term unemployment in total unemployment (35%). However, these positive effects are not enough to offset the negative impact of inflation. Despite a 6.6% increase in wages and salaries in the first quarter, prices rose by 10.7%, resulting in a real wage decline of 2.3 percentage points – further depressing citizens’ purchasing power.

The current FRAX shows that long-term planning horizons are needed to reverse the current downward trend. By using scientific findings, we can not only master the current challenges, but also successfully meet the ongoing evolution on the future labor market.

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