Germany could face shortage of 723,000 skilled workers by 2029

Germany could face a shortage of around 723,000 skilled workers by 2029, nearly twice the level recorded in 2025, according to a study by the employer-linked German Economic Institute (IW).

The IW said Germany had been short of around 370,000 skilled workers last year.

The biggest shortage in 2029 could be among sales workers, with around 39,100 positions potentially remaining unfilled, according to the study. Other professions expected to be heavily affected include childcare and education, with a projected shortfall of 29,900 workers, and social work and social education, with 23,600.

Healthcare and nursing could face a shortage of 18,700 workers, followed by electrical construction with 17,400, the study said.

Study author Alexander Burstedde attributed the expected increase partly to the large number of people who will retire in the coming years. At the same time, too few younger workers are expected to enter the labour market, while Germany could find it more difficult to attract workers from abroad.

An economic recovery could further increase demand for skilled workers, Burstedde said.

The IW analysis projects labour-market trends through 2029 based on data available up to the end of 2024. It also shows how the shortage of skilled workers could develop if current trends continue.