OpinionStructural changes in the labour market

New ideas needed

The structural problems in the labour market are there for all to see, but can be overcome. It just takes the courage to come up with some new ideas.

New ideas needed

How does this fit together? Most companies complain about a shortage of skilled workers. And it is not without reason that they still prefer to retain staff on short-time working rather than letting them go. On the other hand, industrial corporations are compiling austerity programmes with the most impressive names, and hundreds to thousands of jobs are being cut, from management to unskilled workers in the assembly plant. Sentiment indicators also point to ongoing job cuts. In the construction industry, for example, employment has been falling steadily for 40 months. So it is almost a positive that the industry recently saw the lowest level of job cuts since September 2023.

And while structural change is costing jobs, the energy transition, climate change and other factors are creating new, additional jobs. The Institute for Employment Research (IAB) estimates that there will be between 102,000 and 157,000 such jobs by 2040. All that is missing is a clever idea for placing the redundant workers in the vacant positions. In some cases, the skills required are not so different, for example in the metal or automotive supply industry and the energy sector. Further training can help here.

Good starting points

However, people are often in the wrong place. Company housing would be a solution as long as there is a shortage of affordable housing. Or more women would have to be brought from part-time to full-time work. A good idea, but where would that leave children and relatives in need of care? Germany is still a long way from having a stable and affordable infrastructure nationwide. When it comes to immigration, there are also high hurdles in terms of the recognition of qualifications and bureaucracy – which Germany cannot afford at present. And if two contracting parties agree, why not give it a try? It is too rarely mentioned that more effort should be made to retain well-trained personnel in the country.

But it would be better not to let compatibility problems arise in the first place. For example, by promoting STEM professions at an early stage. Anyone with school-age children at home will just smile wearily at this. The outdated and theory-heavy curriculum is very good at putting students off. Initiatives by the parents' council with career fairs and the like are far from enough. Too many young people are still dropping out of training or university because of misconceptions. Internships, which could remedy the situation, are often difficult to obtain. We finally need the leeway and courage to try out more options on the labour market and on the way there.