According to expert Oliver Ehrentraut, the labor shortage is greatly affecting the implementation of important goals set by the German Government .
According to a study by the Prognos Institute, the labor shortage is having a major impact on the implementation of important goals set by the German Government.
Key projects in many areas, from energy transition, expanding transportation systems, developing electric vehicles, building housing to improving healthcare and childcare systems... are at risk of not being completed.
In the housing sector, for example, the German government plans to build 400,000 new apartments per year. But only about 930,000 people are currently employed in the construction industry , and the number of workers is expected to decline by the end of the decade, which is considered to be far short of actual demand. Therefore, the target is unlikely to be achieved.
According to expert Oliver Ehrentraut - head of the above research, the German government should re-evaluate its goals. Setting ambitious goals is right but they also need to be feasible.
[Labor Crisis - A Time Bomb for the German Economy ]
For years, German companies have been warning of a ticking time bomb in Europe’s largest economy, largely due to a shortage of skilled workers . The issue has become a hotly debated and increasingly heated issue.
Companies across many sectors have shared that they are having a hard time finding skilled workers and the situation is getting worse.
The German government believes immigration is one of the solutions and hopes parliament will pass revised immigration reform legislation in the coming weeks.
With the new law, Germany could become a more attractive destination for foreign workers.
“If we do nothing, by 2035 Germany will be short 7 million workers,” Labour Minister Hubertus Heil told the Financial Times this week.
He shares the concerns of many businesses that if action is not taken now, the labor shortage will soon begin to affect Germany's growth./.
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