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WORKING IN GERMANY

EXPLAINED: Which German sectors have the most job openings?

A new study has charted the sectors that are most in need of workers in Germany right now - with some surprising results.

A worker stacks shelves at an Amazon logistics centre
A worker stacks shelves at an Amazon logistics centre in Saxony-Anhalt. Photo: picture alliance/dpa | Klaus-Dietmar Gabbert

Germany is in the grip of a labour crisis, with shortages hitting pretty much all industries in the country. But in some types of job, the empty vacancies are stacking up faster than others. 

In a survey of around 45 million job adverts listed online between 2019 and 2023, researchers from the Bertelsmann Foundation tried to gain a sense of which sectors were the most desperate for new workers in Germany. The study looked at 1,210 professions overall, with temporary jobs weighted lower. 

It found that two types of worker were in particularly high demand: warehouse and administrative staff. 

The increasing need for warehouse logistics staff is linked to the growth in online retail services during the pandemic. When high-street shops had to close their doors or put entry restrictions in place, many people turned to companies like Amazon or online branches of retail brands to purchase goods.

READ ALSO: Unemployment rises in Germany as job vacancies remain at ‘high level’

This shift in buying habits has had a major impact on the job market: in 162 out of 401 districts in Germany, Bertelsmann found the majority of job postings were for warehouse jobs.

In cities and metropolitan areas, however, it was secretarial and administrative staff that employers were desperate to find. These came top of the rankings in around a quarter of the districts surveyed (101) and accounted for the highest number of job advertisements across the country last year.

In 2022 alone, 254,499 open positions for office and secretarial workers were posted online. Logistics workers came close behind with 253,487 job advertisements that year.

Fewer skilled jobs on the market

Somewhat surprisingly, adverts for skilled workers – where German is battling major shortages – have slumped in recent years. 

The three occupations with the biggest losses between 2019 and 2022 are skilled workers in mechatronics, which dropped 76 places in the rankings, tool technicians, which were down 54 places, and bank clerks, which were down 43.

“For many skilled occupations, employers have shown some restraint in recent years,” said study author and employment expert Gunvald Herdin. “That seems to be changing again in 2023.”

Salt factory in Germany

A wheel loader loads salt onto a truck at the “Ciech Salz Deutschland” plant. SPhoto: picture alliance/dpa | Klaus-Dietmar Gabbert

He says the share of skilled jobs fell by more than four percentage points from 2020 to 2022, to about 37 percent. “However, in the first half of 2023, there is again a larger share of skilled worker positions at just under 41 percent,” he added.

The biggest increase in open positions comes from the health sector.

Advertisements for psychiatrists and psychotherapists have climbed 106 places in the ranking, followed by specialists in paper and packaging technology (up 97), childcare workers and teachers (up 62) and specialists in internal medicine (up 59).

READ ALSO: Surge in foreign workers applying to have qualifications recognised in Germany

‘New opportunities’

According to Herdin, one of the most striking aspects of the survey is the variation in the labour required across different parts of the country.

“I was surprised by the regional differences – in cities and districts, 17 different professions made it to first place,” he told DPA. “That’s why regionally specific measures are needed. For those providing training and education, that is a challenge.”

The Bertelsmann expert also commented on the fact that digitalisation in the economy – particularly in terms of online shopping – was creating new jobs in Germany.

“You can see very clearly the boom in online retail,” he said. “Because we all shop online, there is now more demand for helpers as well as for skilled workers in logistics, shipping and packaging. There are completely new opportunities on the labour market.”

According to the study, there is a demand for workers at all levels of the economy – not just in senior or skilled roles. 

“Contrary to what is often thought, the entry-level positions are not dying out. Instead, they are continuously changing in the course of market developments and digitalisation,” Herdin explained.

For example, outside of warehousing, helpers are most in demand in the first half of 2023 in cleaning (5th), catering (15th) and forklift (20th).

READ ALSO: REVEALED: The German industries most desperate for skilled workers

At the higher levels, employers are looking for master craftsmen, technicians and bachelor graduates in business organisation (4th place), accounting (9th place) and advertising and marketing (10th place).

Jobs for people with masters degrees were primarily in sales (7th place) and software development (13th place).

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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