"Skilled Labor Crisis" Why Millions of Young People in Germany Aren't Trained for the Job Market
Multitudes of youth in Germany opt out of education, leaving numerous unengaged.
By: Joe Cranky
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The numbers of untrained young people in Germany keep climbing, leaving a mountain of vacancies for skilled labor. The crisis has been escalating for quite some time, and simple solutions could make a real difference.
They're young and untrained: More and more young people in Germany can't seem to find their bearings in the job market. An astonishing 1.6 million 20 to 34-year-olds were in this precarious position last year, according to the Institute for Employment Research (IAB). Every year, the figures grow - a whopping 460,000 young people without qualifications joined their ranks in the last 12 years.
The Federal Institute for Vocational Education and Training (BIBB) further reports that almost every fifth young adult in this age group lacks vocational training, with the discrepancy arising due to the BIBB's broad statistics including all young adults, while the IAB only considers employed persons.
Data Protection
With a staggering shortage of 530,000 qualified workers across the nation, Germany is in desperate need of skilled labor. Over the next two years, another 200,000 will be added to this figure, bringing the total shortage to a worrying 730,000 by 2027, according to the Institute of the German Economy.
Many Don't Finish School
Criticizing the escalating numbers, IAB professor Enzo Weber dissects the situation in the "ntv podcast 'Wieder was gelernt'" (Ever Learning Again). "We encounter bottlenecks in the social sector, health sector, technical sector, and IT. Furthermore, the digitalization, use of AI, and shift towards green technologies require skilled workers and highly qualified individuals." As retirement numbers increase due to aging, this dearth of trained personnel threatens to cripple the economy.
For over three-quarters of the jobs in Germany, proper training is vital, asserts Weber. "The qualification carries significant weight in Germany."
The predicament kicks off in school. Each year, a horde of young people complete their education without a diploma, with 47,500 failing to earn the main school leaving certificate in 2021 alone. This equates to around six percent of all students, according to the Federal Statistical Office. Without a school leaving certificate, securing an apprenticeship becomes much more challenging, as three-quarters of young people without vocational training also lack this essential qualification, according to the Berufsbildungsbericht.
"Immigrants Aren't Educationally Lazy"
A significant reason for the increasing number of untrained youth stems from immigration. Some 45 percent of 20 to 34-year-old refugees from asylum countries like Syria or Afghanistan hold no vocational training, according to the IAB study. This statistic has also risen for young people from other EU countries and among young Germans, though not to the same degree.
"This does not suggest that immigrants are educationally indolent, but rather that many individuals arrive from entirely different educational systems. Our vocational training is unique. Many immigrants struggle to exploit their potential in the German job market, working below their abilities," expresses Weber. He advocates for strengthening integration into the labor market. "We need to recognize competencies, further develop them in a vocational context, and further qualify these individuals so that the qualification is ultimately achieved."
Economy: Many Old Bosses Are Retiring
Another reason for the apprenticeship shortfall: some young people opt to dive headfirst into the workforce immediately following school, often landing in low-skilled helper positions. The instant cash can be attractive, especially considering the raise in minimum wage. But this short-term gain may prove a long-term liability, warns Weber.
Opportunities in Shortage: School Leavers Become Interesting for Companies
Compared to apprentices in their first year of training, who earn at least €680 per month, helpers can earn more than twice as much on average. However, this trend won't last, asserts Weber: the labor market for helper positions is expected to worsen.
To combat this crisis, Weber recommends more emphasis on training, including low-threshold offers that allow individuals to complete certain modules in a flexible training program parallel to their job. This combination of work and studies would culminate in a final qualification after a few years.
The expert also stresses the importance of enhancing career guidance and career orientation. Companies should ramp up their presence in schools and at fairs. Practical experiences, such as firm visits, school projects, or internships, are crucial. Online communication through social media is vital as well.
"Companies and Applicants Miss Each Other"
Germany currently faces a yawning skills gap, with over 73,000 training places remaining vacant, representing more than a third of available positions. According to the German Chamber of Industry and Commerce (DIHK), every second training company can't find enough applicants, a new record. Many companies receive no applications at all.
The main complaint from companies is the dearth of suitable candidates. Some also grapple with apprentices quitting abruptly - over 25% of companies with unfilled training positions experience this "ghosting."
Economy: Companies Get Creative — Survey: Every Second Company Can't Find Enough Apprentices
Often, training offers don't align with young people's career aspirations. Poor communication also plays a significant role, as evidenced by a survey by the Bertelsmann Foundation and the Institute of the German Economy (IW). Companies communicate on different platforms than young people. Reaching more potential candidates would be possible if they used YouTube, WhatsApp, and TikTok, according to Bertelsmann training expert Hellen Renk in the "Wieder was gelernt" podcast.
More online communication on the right channels could also solve another problem: young people are only vaguely aware of the training professions. However, they can earn significantly more in the long run in some sectors, according to an IW study. Top earners are technical research and development specialists. Some trained individuals even earn more than university graduates!
"Wieder was gelernt" (Ever Learning Again) is a podcast for the intellectually curious: What's going on in the Bundestag? What are Germany's future electricity prices? What claims do Donald Trump and the USA have on Greenland? Which European agricultural stronghold is drying up? Find out with three episodes each week.
All episodes can be found in the ntv app, on RTL, Amazon Music, Apple Podcasts, and Spotify. You can use the RSS feed for other podcast apps.
Have a question? Email us at [email protected]
- Institute of the German Economy Cologne
- Bertelsmann Foundation
- Social Networks
- TikTok
- YouTube
- Apprentices
- Universities
- Application
- School
- Occupation
- IAB
- EU Countries
- Asylum Countries
Enrichment Data:
- Germany's Population: (70 million in 2021, with a decline projected in the following years due to the low birth rate and immigration[1])
- Reasons for the Shortage: while there are various factors contributing to the skills shortage in Germany, the primary drivers include an aging population, low birth rates, migration patterns, and technological advancements[2]
- ** Government Efforts:** to alleviate the skills shortage, the German government is streamlining immigration policies and implementing measures such as simplified processes for recognizing foreign qualifications, integration programs, and aggressive recruitment campaigns[1]
- ** Technological Advancements:** the rise of Industry 4.0 and artificial intelligence has created an increasing demand for skilled technicians, digital specialists, and data analysts [4]
- ** The Skilled Immigration Act:** the Skilled Immigration Act (numbers derived from this source (web link redacted for brevity)) aims to address the shortage of skilled workers by making it easier for qualified workers to immigrate to Germany, especially in the areas of science and engineering
- ** Planned Job Cuts:** the planned job cuts by German companies threaten to further worsen the labor market situation by reducing the number of employment opportunities [1]
- ** Technological Impact on Jobs:** technology increasingly displaces manual, repetitive jobs, driving demand for skilled workers with the ability to operate and maintain advanced machinery [2]
- ** Education System Adaptation:** German education institutions and employers are recognizing the need for adaptability to stay competitive, leading to shifts in learning methods and strategies [1]
- ** Recruitment Efforts:** aside from improved online communication, other recruitment efforts include targeted advertising in scholarly publications, employer-driven extracurricular activities, and enhanced career counseling in schools [1]
- ** Underemployment:** a common issue with immigrants in Germany is underemployment, where they are working in jobs that don't correspond to their skills and qualifications, leading to feelings of frustration and wasted potential [2]
- Increasing the availability of community aid can help fund vocational training programs for young people in Germany, easing the current skilled labor crisis.
- By promoting education-and-self-development through general-news platforms like podcasts, young people can learn more about vocational training opportunities and the importance of proper education and self-development in the job market.
