Germany is losing billions of euros in economic output due to a shortage of skilled workers, according to a study by Boston Consulting Group (BCG) in collaboration with the United Nations International Organization for Migration (IOM). The study found that the German economy loses €84 billion annually due to the shortage of workers, making it the second-highest loss among the world’s strongest economies after the United States. The study used data from the Institute for Employment Research (IAB), which reported that in the second quarter of 2022, approximately 1.9 million jobs in Germany were open. This number is significantly higher than the long-term average, with economists and the study’s authors considering it a structural shortage.
According to the study’s authors, Johann Harnoss and former Siemens HR executive Janina Kugel, the loss of each worker costs the economy €84,000 annually. With one million missing workers above the long-term average, the German economy loses €84 billion per year. The authors estimate that by 2035, the number of people of working age in Germany will decrease by three million, and by 2050, the number of workers will decrease by nine million. Without appropriate countermeasures, the problem is likely to worsen, according to Kugel. Harnoss suggests that Germany could recruit workers from countries with growing populations, such as India, Nigeria, Indonesia, or Egypt, and train them in their home countries before they come to Germany.
Kugel and Harnoss recommend that German SMEs should look for new employees on the international job market to combat the shortage of skilled workers. This not only helps to address the labor shortage but also makes companies more innovative. The authors emphasize that political ideology should not play a role in addressing the issue, and that unideological approaches are necessary to ensure the acceptance of immigration.
