Skills shortage

dpa | Andrea Gillhuber,

Employer president fears loss of prosperity

You can see it in restaurants, craft businesses and many other sectors: There is a shortage of skilled workers. The employer president describes what this could mean.

Rainer Dulger, President of the Confederation of German Employers' Associations

© Sven Hoppe/dpa

Employers' President Rainer Dulger has warned of the massive consequences of the shortage of skilled workers in Germany. Dulger told the German Press Agency: "The shortage of skilled workers is so threatening that we will probably have to accept a loss of prosperity over the next ten years." The right approach would be to immediately adopt a highly flexible immigration policy and enable quick and uncomplicated immigration for skilled workers. Dulger believes that at least 500,000 more skilled workers are needed every year.

"The demographic turnaround will begin in 2025," said Dulger with a view to the so-called Bayboomer cohorts, who are increasingly retiring. "We currently have a record number of around 45 million people working in the German economy. Over the next ten years, we will lose around 5 million of these people as they take their well-earned retirement."

In addition to immigration, domestic potential must be tapped, said the President of the Confederation of German Employers' Associations. "Everyone who has not yet graduated should be given a second and third chance. We also need to step up the pace when it comes to reconciling work and family life. There has been a shortage of childcare workers in nurseries for years." It is time to finally make substantial improvements to childcare.

Money for the welfare state will be lacking

"If we don't succeed, we will have to accept a loss of prosperity because, of course, 5 million fewer people in employment will be paying taxes and paying into the social security system. This money will be missing," said Dulger. "Our welfare state will no longer have the funds available that were previously available." The state would then no longer be able to afford the help it currently provides to the poor and needy.

"If we don't reform our pensions now, we will no longer have to put around 100 billion euros into pensions in the future, but we will have to put 180 and 200 billion into pensions - simply because there will be more pensioners." If this were to be offset by even lower contributions, the state would have to compensate more and more from tax revenue. "Which it won't be able to do as well in future, because fewer and fewer taxes will flow in because there are fewer and fewer people in work," says Dulger.

Proposals from German associations on recruiting foreign skilled workers

The Confederation of German Employers' Associations and the Association of German Chambers of Industry and Commerce had made suggestions as to how more immigrants could come to Germany more quickly. For example, procedures should be digitized and thus accelerated. Long waiting times for visa appointments should come to an end. Dulger suggested a central agency that would be responsible for enabling interested parties from all over the world to apply online - "and then be informed by this agency exactly what they need and what documents they have to submit".

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