IT professions in crisis mode: 26.2% fewer jobs – where is the salvation?

IT professions in crisis mode: 26.2% fewer jobs – where is the salvation?

The current economic situation in Germany has far-reaching effects on the IT industry, as a new study by the Cologne Institute for the German Economy (IW) shows. According to the results, the number of average vacancies in IT professions fell by 26.2 percent in 2024 compared to the previous year. A total of 46,431 IT positions remained unfilled, a decrease of 16,500 compared to 2023. Study author Jurek Tiedemann attributes this drastic decline to weak economic development.

Compared to the qualified workforce as a whole, which recorded a decline of 4.4 percent, the job cuts in the IT industry are particularly pronounced. Tiedemann emphasizes that there is no proven connection between the decline in job vacancies and the use of artificial intelligence, although companies expect the use of AI to increase the need for IT specialists.

Impact of economic uncertainty

Uncertainty about economic developments is causing companies to make savings and postpone investment projects. Furthermore, a decline in vacancies can also be attributed to the relocation of services abroad. Positions that require a master's degree or diploma are particularly affected, with a decline of 33.7 percent.

There were also significant declines in the areas of computer science (minus 46.2 percent) and business information technology (minus 38.2 percent). Interestingly, demand for IT staff increased in areas such as legal, tax and auditing, where 1,770 positions are available - six times as many as in 2023.

Skilled labor shortages and job vacancies

Overall, the study showed that the number of open IT positions decreased in 56 of the 88 economic sectors examined, while an increase was recorded in 25 areas. The skills shortage in the IT industry remains high, with over 13,500 vacancies remaining unfilled last year. In computer science in particular, seven out of ten open positions could not be filled mathematically, which illustrates the serious situation in this sector.

The data for this study comes from the Federal Statistical Office and the IW skilled workers database, which are based on unemployment figures and vacancies from the Federal Employment Agency.