Unemployment rises to 70,100 - skills shortage still remains a problem

Unemployment rises to 70,100 - skills shortage still remains a problem

According to a report from www.ndr.de, the number of unemployed rose by 5,000 to a total of 70,100 people in the country in January 2024. The areas of health and social services, professional, scientific and technical services as well as industry and craft businesses are particularly affected. Demographic change is having a negative impact on the shortage of skilled workers, as there are too few young workers coming in to replace the baby boomers.

In order to secure workers, Miriam-Simona Knodel from the North Employment Agency suggests giving people with handicaps, odd CVs, older people or refugees a chance. Qualifications and further training for existing employees are also important. Companies must create attractive framework conditions in order to compete with other companies. In Hamburg the number of unemployed rose the most compared to the previous year, while in MV the increase was the lowest at 4.3 percent.

In order to retain skilled workers, Sebastian Schuffenhauer from the Rostock car dealership relies on above-standard wages, flexibility in working hours and a health budget for employees. Accelerated application processes and digitalization should also make joining the company more attractive. The state primarily promotes further training to help secure skilled workers. Markus Biercher, head of the Northern Employment Agency, sees a lot of potential in the integration of Ukrainian refugees to secure jobs and skilled workers.

As a financial expert, it is important to analyze that the skills shortage can have long-term effects on the market and the financial industry. Companies that invest in the further training and qualification of their employees could be more competitive in the long term and remain successful in the long term. At the same time, government funding programs for further training and the integration of refugees into companies could have positive economic effects. It is important that politicians take the challenges of demographic change and the shortage of skilled workers seriously and take appropriate measures to support the securing of jobs and skilled workers.