After years of thriving, Germany’s labor market faces a period defined by multiple challenges – many of which are also being felt throughout Europe. Demographic change and over-academisation of our society are presenting us with complex issues, while digitalization and socio-ecological transformation are also fundamentally changing demand for labor. But these hurdles also come with new opportunities, when proactively and strategically addressed.
From the Black Forest to Edinburgh, this fall has been an active period for WifOR’s labor market research. Discover how companies, governments, and (future) employees can best equip themselves for the evolving world of work in this edition of WifOR Insights: Labor Market.
Best wishes,
Navigate labor shortages by strategically recruiting and developing
Global automotive supplier Continental is striking 5,500 jobs – 1,000 of which are located in Germany. Once Germany’s flagship industry, the automotive sector is undergoing historic transformation: an acute shortage of skilled workers on the one hand and the obsolescence of professions on the other. WifOR’s study in collaboration with Bertelsmann Stiftung examines how employees in at-risk professions within the automobile sector can transition towards promising careers. As a result, organizations are able to plan recruitment and training for employees based on identified skill gaps. Learn how companies can strategically develop, recruit, and retain personnel using scientific data to counteract skilled labor shortages in this article.
Apprenticeships are going undervalued
Successful companies develop future-proof strategies. But an underappreciation of apprenticeships has resulted in an overly academicized labor market lacking vocational workers – something Germany’s economy is not geared towards. The reality is that a degree does not guarantee better chances on the job market these days and young people trained in vocational industries are met with high demand. I recently discussed the challenges, opportunities, and integration on Germany’s labor market in an interview with the Frankfurter Rundschau – read (DE) here. For a deeper analysis of the situation on Germany’s labor market, take a look at the most recent Labor Market Index FRAX – updated for Q2 2023.
Employer attractiveness: being seen as future-oriented leads to a healthier workforce
Why is it important for organizations to position themselves as attractive? Last month, AOK-Bundesverband published a study on absenteeism in Germany. It found that employees who consider their employer to “equipped for the future” take significantly fewer sick days (11.6) on average than those who don’t consider employers ready for tomorrow’s world of work (16.2 days). As a result, an estimated productivity loss of almost 30% is avoided. However, decisive criteria for attraction vary depending on industry, job profile, and personal preferences. Understanding what employees consider crucial attractiveness factors is key to employee well-being and economic success. Explore which factors make an employer attractive and how organizations can position themselves advantageously in this article.
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