VDMA / Labor market
Mechanical engineering creates 32,000 new jobs
Despite bottlenecks in the labor market, the VDMA recorded around 32,000 more employees in the mechanical and plant engineering sector in Germany in April 2018 than in the previous year. According to the association, the increase will not be enough to meet production requirements.
According to VDMA Chief Economist Dr. Ralf Wiecher, this increase in employment is "remarkable." It has been successful "despite all the difficulties in finding enough qualified personnel on the labour market," says Wiechers. "But it is clearly not enough to realize the expansion in production that is actually needed." In April, more than a third of companies in the mechanical engineering sector also complained about obstacles to production caused by a shortage of workers. "That is significantly more than in previous comparable upswing phases," warns Wiechers. Overall, the mechanical engineering sector in Germany employs more than 1.3 million people, over 1 million of whom work in companies with more than 50 employees (as of April 2018), making it the largest industrial employer in the country.
Production increased by 4.2% in real terms in the period from January to April compared to the same period last year. "This is a strong performance, as other production bottlenecks are also limiting growth," emphasizes the chief economist. In April, 29% of companies complained of a shortage of materials for production. In 10% of companies, too little machinery is limiting production. "Politicians in particular have the power to turn these obvious needs into investments. Instead of constantly unsettling investors, they must live up to their responsibility to set good framework conditions," demands Wiechers.
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