German institute: The labor shortage crisis has reached its peak



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German institute: The labor shortage crisis has reached its peak

The crisis with a shortage of skilled labor has reached its peak in Germany, and almost half of German companies are affected by a lack of specialists, the Munich-based Ifo Institute for Economic Research announced on Tuesday.

"In July, 49.7 percent of surveyed companies said they were affected by a labor shortage," the Ifo institute from the University of Munich said. This is the most since 2009, when this institute has been conducting this type of examination.

The lack of workers, according to information from entrepreneurs, reduces the efficiency of companies and revenues. "More and more companies have to limit their operations because they simply don't have enough staff," said Stefan Sauer from Ifo.

According to experts' estimates, this problem could become even worse in the medium and long term.

The biggest shortage is in the service industry

The biggest shortage of workers is recorded in the service industry, with as many as 64 percent of hotel and catering companies affected.

The situation is similar in the transport and transportation of goods. In the processing industry sector, the food processing industry is the most affected. In the construction sector, 39.3 companies complain about the lack of workers, and the figure would be higher if construction companies could operate at full capacity, which is currently not the case due to the lack of materials.

Traditionally, there is still a shortage of experts in the IT industry and in the automotive industry, as well as in healthcare. An additional problem is the lack of students in vocational schools. Annually, between 15 and 20 thousand places for training remain unfilled.

The German government recently announced a change in the law on immigration, which would allow the immigration of young people who are ready to study for one of the occupations in deficit.

Government is also preparing a change to the asylum law

The Social-Democratic-Green-Liberal government is also preparing a change to the asylum law, which would allow young people whose asylum application has been rejected or are in the process of waiting for an answer to stay in Germany in case of successful training.

The Christian Democratic opposition is fiercely opposed to this idea because it believes that it would increase the motivation for illegal immigration.