Skilled labor shortage in Hesse: Companies rely on compromises!

Skilled labor shortage in Hesse: Companies rely on compromises!

In Hesse, the situation on the labor market is worsening dramatically. The shortage of skilled workers is recognized as one of the biggest challenges for the economy, as Economics Minister Kaweh Mansoori emphasizes. The IAB Establishment Panel 2024 showed that many companies have difficulty finding the right employees and are willing to make compromises to fill vacancies. According to a current survey that included over 1,000 companies in Hesse, Hessen.de report an increase in unfilled positions, especially in qualified positions, where around 88,000 positions are at risk.

The hiring rate in the first half of 2024 was 6.2 percent, which corresponds to around 212,000 new hires. Particularly noteworthy are the service sectors, which lead with 8.9 percent in business-related and scientific services. Smaller and medium-sized businesses enjoy higher hiring rates, while manufacturing and public administration lag behind at 3.6 and 4.2 percent respectively. This shows that not all sectors are affected equally. Interestingly, 48 percent of the companies surveyed do not make any compromises when it comes to recruiting, which indicates the pursuit of quality.

Compromises and challenges

The survey reveals that many companies are being forced to rethink their recruitment methods. At least 25 percent of the companies surveyed have changed their requirements for the professional qualifications of applicants. These adjustments are necessary to overcome the challenges of staff shortages. What is particularly striking is that 73 percent of companies in the construction industry and 65 percent in trade and repair expect difficulties in recruiting skilled workers in the coming years.

A frequently mentioned compromise is the increased training effort that is necessary to properly train new employees. Furthermore, 20 percent of companies have adjusted features such as remuneration, working hours and required language skills. Social skills and the well-being of employees also play a central role in retaining suitable employees in the company in the long term.

Outlook and supporting measures

The IAB company panel, which surveys around 15,000 companies in Germany every year and has been carried out since 1993, shows that over 80 percent of all companies surveyed are affected by personnel problems. This comprehensive data supports labor market research as well as politics and business in their efforts to take concrete measures to combat the shortage of skilled workers. Special support for training and further education is provided by the state government, the EU and the Federal Employment Agency in order to respond appropriately to the growing challenges.

In view of these developments, it is to be hoped that the measures taken by the Hessian state government and the flexibility of companies will help in the long term to get the shortage of skilled workers under control and to significantly improve the labor market situation.