More Than Half Of German Companies Bobbled By Labor Shortages

More than half of Germany's companies are struggling to fill vacancies due to a lack of skilled workers, the German Chambers of Commerce and Industry (DIHK) said, in the latest sign of growth headwinds belaboring Europe's largest economy, Maria Martinez reported for Reuters.

Photo Insert: In carmaking, 65% of companies reported labor shortages.

The proportion of companies facing difficulties hiring was at its highest ever level, the DIHK found in its survey of 22,000 companies, with 53% reporting shortages.

"We can assume that some 2 million vacancies will remain unfilled," Achim Dercks, DIHK's Deputy Chief Executive, said, with the result that companies were foregoing nearly 100 billion euros worth of output.

The labor market's resilience did not mean companies were doing well, he added. Staff shortages, high energy prices, and the shift towards climate neutrality were a "dangerous mix" that could lead firms to move production abroad.

"The skilled worker shortage is not only a burden on businesses, but it also jeopardizes success in important tasks for the future like the energy transition, digitization, and infrastructure build-out," he said.

Workers with the relevant skills were growing ever scarcer, he said, including in the manufacturing sectors that are the engine room of the German exporting powerhouse.

The survey found that 67% of electrical equipment manufacturers were unable to fill vacancies and 67% of mechanical engineering companies. In carmaking, 65% of companies reported labor shortages.

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