Unfilled Job Positions Proliferate - And Possible Solutions in Sight
The public sector is currently grappling with a significant skills shortage, as evidenced by the 1.2 million open positions available. Simultaneously, the number of unemployed individuals is on the rise.
One concerning trend is the increase in long-term unemployment. To counter this, further education plays a crucial role in ensuring a skilled labor force. However, the societal desire for fewer working hours should also be taken into account to make higher ed jobs more attractive to potential applicants.
Interestingly, over half of the unemployed are primarily seeking jobs in the helper sector, despite possessing higher qualifications. This trend highlights the need for a more diverse job market.
Digitization and decarbonization are transforming the public sector, leading to a skills mismatch and subsequent shortage. A study suggests that an annual net immigration of 288,000 people is required to balance the missing skills potential, with many immigrants staying in Germany for a short period, necessitating a higher gross immigration.
Cities and communities can combat this skilled worker shortage by adopting diverse personnel acquisition strategies. For instance, hiring retirees for project deployment, returnees with a love for their hometown, and international skilled workers can prove beneficial.
The integration of individuals with a long-term residence perspective into the labor market is equally important. Ensuring they have the necessary qualifications, such as proficiency in German, is key to their successful integration.
Refugees who arrived in Germany in 2015 have shown promising employment rates, with 64% being employed nine years after their arrival, compared to 70% in the general population.
The digital transformation in municipal administration increases its effectiveness and efficiency by automating routine tasks and enabling faster, more transparent processes. Decarbonization, on the other hand, drives local climate-friendly energy planning and investments, such as in renewable heating networks, activating local actors, and fostering sustainable infrastructure development in municipalities.
The labor market is experiencing both long-term and short-term trends that affect hiring. The number of applications per job advertisement in the public sector is significantly increasing. However, only around 40% of incoming applications are suitable for positions requiring a skills assessment.
To address the imbalance between open training positions (466,000) and applicants (400,000), municipalities can find support by utilizing potential from young people without a training place and refugees without a job.
Lastly, it's worth noting that the public sector is experiencing a wave of retirements and early retirements, with 24% of employees being 55 years and older in 2021. The first quarter of 2025 saw 49,000 open positions in the public sector.
In conclusion, addressing the skills shortage in the public sector requires a multi-faceted approach, encompassing education, immigration, digitization, decarbonization, and diverse personnel acquisition strategies.
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