Skilled labour shortages in Germany: what decision-makers should watch

Demographic change means that more workers will retire in the coming years than enter the labour market.

For executives, the main question regarding “Skilled labour shortages in Germany” is their own exposure: which costs, revenues and financing conditions depend on it, directly or indirectly?

A proven approach is to run scenarios and monitor leading indicators regularly. That puts decisions on a solid footing without reacting to every headline.

The debate around “Skilled labour shortages in Germany” is not new, but it has grown more urgent since 2022. The energy price shock, the turn in interest rates and geopolitical tensions have called many old certainties into question.

Economists and industry bodies assess the situation in different ways. Most agree, however, that reliable conditions for investment decisions are crucial.