Alarming forecast: Germany faces a massive shortage of skilled workers - 5 million workers needed by 2030

A recent survey by the German Economic Institute (IW) reveals a dramatic development for the German labor market: there will probably be a shortage of five million skilled workers by 2030. The main reason: the baby boomers are retiring, while significantly fewer young people are entering the labor market.

Demographic time bomb is ticking

The figures are alarming: in 2022 alone, over 300,000 more people will retire than new workers will join the workforce. This trend is expected to peak in 2029, when 1.4 million people born in 1964, a particularly high birth rate, reach retirement age. In contrast, there are only around 736,000 potential career starters from the 2009 birth cohort - a gap of 670,000 workers this year alone.

Massive impact on the economy and society

This demographic development has far-reaching consequences:

• Increasing burden on social security systems
• Higher contributions for the remaining workforce
• Endangering the competitiveness of German companies
• Possible restrictions on pension benefits

Solutions are not enough

IW economist Holger Schäfer sees two key levers to counteract the trend:

1. Controlled immigration of qualified skilled workers
2. Increasing labor force participation among the existing population

However, the expert warns: “The magnitude of the difference between the age groups means that the growing gap is unlikely to be compensated for.”

Digitalization as part of the solution

The digitalization and automation of processes plays an important role in overcoming the shortage of skilled workers. With PG, CSP GmbH & Co. KG offers a visual assembly assistance system that guides employees step by step through production and assembly processes. The software supports companies in optimizing their processes and deploying existing skilled workers more efficiently. The visual worker guidance and automatic documentation prevent errors and minimize training costs - an important aspect in times of scarce personnel resources. PG proves particularly valuable when integrating foreign skilled workers: thanks to the visual, language-independent guidance, new employees can join the production process directly without a long training period.

“The shortage of skilled workers is forcing companies to optimize and automate their processes. With PG, companies can achieve exactly that - they gain efficiency and use their valuable employees for the really important tasks. The system pays off, especially when integrating foreign specialists, as there is no need for time-consuming training,” explains Matthias Salzberger, Product Owner PG at CSP GmbH & Co. KG.