Hays Skills Index: Germany
The Hays Global Skills Index 2018 shows Germany's labour market to be tightening as an ageing population and automation create pressure for more high skilled workers.
11 December 2018
At the CBI conference in London Hays' Simon Winfield highlighted how technology, changing dynamics of the workforce and the speed of socio-economic change mean that employers will have to use new approaches to ensure they attract the talent to drive successful future growth. Here we take a look at Hay's Global Skills Index 2018 section on Germany, the manufacturing centre of Europe, and the situation in their labour market. 
Germany’s labour market has tightened considerably, with the unemployment rate (ILO definition) declining to around 3.5%.This is the lowest since reunification, reflecting a sharp rise in the number of employed workers, up 1.5% in 2017. There are no signs that demand for labour is slowing, with job vacancies increasing by 11% in 2017.However, the lack of spare capacity in the labour market may start to hamper growth ambitions. Germany’s economic growth is expected to cool over the next five years from a peak in 2017. Over the longer term a working-age population that is starting to rapidly decline is likely to place additional constraints on Germany’s growth potential.
Click here to browse and download the Hays' Global Skills Index 2018 on their website.
Overview of German economy
Germany’s labour market has tightened considerably, with the unemployment rate (ILO definition) declining to around 3.5%.This is the lowest since reunification, reflecting a sharp rise in the number of employed workers, up 1.5% in 2017. There are no signs that demand for labour is slowing, with job vacancies increasing by 11% in 2017.However, the lack of spare capacity in the labour market may start to hamper growth ambitions. Germany’s economic growth is expected to cool over the next five years from a peak in 2017. Over the longer term a working-age population that is starting to rapidly decline is likely to place additional constraints on Germany’s growth potential.- Education in Germany
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German employment skills - view from the ground
The German economy continues to perform strongly. The economy has been growing continuously for years, with 2% growth this year, and the labour market is seeing the benefits of this positive development. Employment is at a record 44 million and the unemployment rate is correspondingly low at under 5% – the lowest level in years. The question now arises as to how demographic developments (baby boomers will start to retire in the coming years) and the digital transformation will affect the labour market. The important thing here is to quickly develop new skills among employees in order to remain competitive in these new markets.Klaus Breitschopf, Managing Director, Hays GermanyKey skills in demand
- Software Developers
- Integrator IT Security Specialists
- IT Consultants
- Project Managers
- Business Analysts
Click here to browse and download the Hays' Global Skills Index 2018 on their website.
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