Frankfurt – The shortage of skilled workers is posing major problems for an increasing number of companies within IG Metall’s organizational scope. The skilled trades sector has long complained about a lack of skilled workers and laborers; now, the problem has also reached many industrial sectors. This is the result of a recent survey of more than 2,500 IG Metall works council members.
With more than 83 percent of the works council members surveyed, a clear majority confirms that it is at least somewhat difficult to recruit enough qualified skilled workers or general laborers. More than a third (36 percent) even report major problems in their sector. The situation is particularly urgent in the skilled trades: here, half of those surveyed rate the problem as severe. In other sectors such as mechanical engineering, automotive manufacturing, and electrical engineering, the figure is around one-third in each case.
“The shortage of skilled workers and labor has spread across the entire industrial sector and now affects—to varying degrees—every industry. It is high time for employers to adapt to this new normal and respond with appropriate measures,” says Jörg Hofmann, President of IG Metall. In any case, working longer and harder is not an appropriate response to this challenge. Rather, the focus should be on better aligning working conditions and hours with employees’ needs in order to become a more attractive employer. “As IG Metall, we will continue to advocate for better working conditions, which also means higher wages and work schedules that fit with people’s lives,” says Jörg Hofmann.
In fact, 45 percent of those surveyed cited relatively unattractive pay and working conditions as causes of the skilled labor shortage. Once again, the skilled trades stand out in this regard. This comes as no surprise: heavy physical strain, a lack of collective bargaining coverage, and limited social recognition have long been among the factors negatively affecting working conditions in the skilled trades. Other frequently cited causes include insufficient training (31 percent) and inadequate opportunities for continuing education (26 percent).
From IG Metall’s perspective, policymakers must also take action to effectively address the skilled labor shortage: Better child care is needed to increase labor force participation, particularly among women; better integration and continuing education opportunities are needed for the unemployed; and a fair skilled labor immigration policy is required.
While the skilled labor situation is viewed as difficult across all sectors, the outlook for companies’ economic situation is predominantly positive. 70 percent of companies rate the prospects for the coming half-year as good or very good. In the fall of 2022, this figure was 63 percent.
A good three-quarters of companies report that their figures for capacity utilization (76 percent), order backlog (81 percent), and new orders (74 percent) remain good or very good. The same applies to sales (73 percent), while the situation regarding profits and investments is somewhat mixed. According to the survey, only 2 percent of companies within IG Metall’s organizational scope face a high to acute risk of insolvency over the next three months.
Overall, the cautious optimism of recent months has thus continued to solidify, and the economic outlook is also assessed as good. While German industry and the sectors represented by IG Metall certainly face major uncertainties and challenges, confidence generally prevails in the companies.
From March 20 to April 6, 2023, IG Metall surveyed employee representatives from 2,508 companies nationwide. These companies represent a total workforce of 1.2 million employees. Approximately 70 percent of the companies are in the metal and electrical sectors.
