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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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TAXES

EXPLAINED: How do you close down a freelance business in Germany?

Leaving the country? Got a steady job offer you can’t say no to? Winding down your self-employment activities in Germany still requires taking a few bureaucratic steps.

EXPLAINED: How do you close down a freelance business in Germany?

Striking out on your own as self-employed is one of the scariest – and potentially most rewarding things – you can do. In Germany, it also comes with its own set of rules around tax and social insurance.

But there are times when – for whatever reason – it may be time to move on.

Whether it’s because you have an exciting new opportunity or things haven’t quite worked out the way you hoped due to economic pressures – winding down self-employment the right way is crucial to avoid gaps in your health and social insurance coverage in Germany.

The steps you have to take are also a bit different depending on if you are new self-employed (Freiberufler) or have a trade licence (Gewerbe) – with some steps not being necessary for new self-employed.

Trade licences are automatically cancelled if the licenced person dies or the company ceases to have financial assets.

Resigning the trade licence or declaring it dormant

New self-employed people like writers or speakers don’t need to go through this step, as they don’t need a trade licence.

Those who have a trade licence will need to contact their competent local authority and resign it, or declare it dormant (withdrawing the licence). If you’re only winding down temporarily, declaring your trade licence dormant instead of de-registering completely may save you a few headaches later.

You may have to do this in person at your local trade office – or Gewerbeamt – depending on whether your local authority allows online de-registration or not. You’ll need to bring your official ID, trade licence, confirmation of registration and possibly an extract from the trade register. Fees are dependent on your local authority and can range from being free to €25.

You can declare the date you intend to resign the licence – which can be in the future. To ensure no gaps in your social insurance protections, including health insurance, set this date for the day before whatever comes next. For example, if you’re starting a new job on January 1st set the date for your trade licence to expire as December 31st.

The trade office will typically notify your local tax office, so you won’t need to do this yourself.

Notifying your tax office

If you’ve had to resign your trade licence, you can skip this step as your trade office will do it for you. If you’re a Freiberufler without a trade licence you need to resign, you’ll have to notify your local Finanzamt, or tax office, yourself.

Luckily, this is a pretty easy step.

First, you need to decide whether you’re ceasing operations completely or wanting to continue them part-time. If you’re ceasing completely, you’ll end up surrendering your self-employed tax number.

You don’t have to do this though. If you think you may still carry on some self-employed business as a side gig, you can inform the tax office that you intend to do so and keep your number.

At that point, the tax office should treat you as a Kleinunternehmer – or a small business making less than €22,000 a year. Having this status means that you will not need to pre-pay taxes or charge VAT on your invoices for freelance side projects.

If you derive any income from your side gig in the future though, you’ll still have to file a tax return.

READ ALSO: Can I have a freelance side gig as an employee in Germany?

Notifying your health insurance

While different private plans in Germany may have different notification requirements, if you have public health insurance in Germany, you should notify them that you’re winding up your self-employed business. Specifically, advise them exactly what date you’re wrapping up.

Again, this should be right before you start your new job or leave the country, to ensure no gaps in your coverage.

If ending your self-employment in Germany, take care to ensure that there’s no gaps in your health insurance coverage, by giving the right date for when you’re ceasing activity. You don’t want to be caught without coverage. Photo by Stephen Andrews on Unsplash

If you are in an artistic profession and thus pay pension, health, and nursing insurance through the Artist Social Insurance Fund (KSK), you should also advise them as well. If you’re leaving self-employment completely, you can typically give notice to KSK as to when it’s ending.

If you’re not, and intend to still make money freelancing as a side gig, they should know this as well. In this event, you’ll no longer pay health or care insurance through KSK, as this is covered through your main job.

You may need to continue to pay pension contributions through KSK based on the amount of money you still make from self-employed activities — depending on how much of them you continue.

KSK: How creative freelancers can pay less for German health insurance

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