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The latest ifo Business Survey, published on August 16, 2023, shows an increase in the shortage of skilled workers in German companies. The survey was conducted among approximately 9,000 companies from various industries throughout Germany. The results make it clear that more and more companies are having difficulty finding qualified workers. This trend is considered a cause for concern by experts, as it continues despite the current economic challenges.
Increasing shortage of skilled workers despite economic uncertainty
According to the results of the survey, a total of 43.1% of companies surveyed in July 2023 reported suffering from shortages of qualified workers. This represents a slight increase compared to the 42.2% in April 2023. One interesting aspect is that this increase was recorded despite a weakening economy. This trend illustrates that finding suitable employees remains a high priority for many companies.
Sector-specific challenges
The service sector is particularly affected by this shortage of skilled workers. In areas such as legal and tax consulting as well as auditing, 75.3% of the companies surveyed stated that they could not find enough applicants* with the required qualifications. Also the traffic range as well as architecture and engineer's offices are strongly concerned, whereby here even a new high level for these industries was reached.
In the area of IT equipment manufacturers, 43.1% of the companies surveyed are affected by a shortage of skilled workers, while in mechanical engineering the figure is 40.9%. In the manufacturing sector as a whole, the proportion has decreased slightly to 34.6%. In trade and construction, slightly less than one-third of companies complain about a shortage of qualified workers.
Outlook and conclusions
The continuing difficulty in finding qualified workers, despite economic uncertainty, raises questions about the future of the German economy. Experts stress that this shortage of skilled workers could hamper growth and innovation in the long term. Companies are increasingly being called upon to find creative solutions to meet their need for qualified employees. This could include investing in targeted education and training programs, promoting career paths in affected industries, and using technology to optimize work processes.
Overall, the Ifo Business Survey shows that the shortage of skilled workers in Germany continues to be a serious concern for companies in various industries. This requires a coordinated effort by business, educational institutions and government to address this challenge and ensure the competitiveness of the German economy in the long term.
The digital display advertising market in Germany recorded impressive growth of 24.7 percent in 2021 and an increase of more than one billion euros compared to the previous year. This is according to data from the Online-Vermarkterkreis (OVK) in the Bundesverband Digitale Wirtschaft (BVDW). The Corona pandemic acted as a catalyst for this development, driving digitization and increasing demand for digital advertising. In total, digital display advertising revenues amounted to EUR 5.12 billion in 2021.
The OVK's "Paid Content" trend study sheds light on users' willingness to pay for editorial content on the Internet. Only 21 percent of users resort to paid online content. Men (63 percent) and young users between 16 and 29 (27 percent) in particular show an above-average willingness to pay for such content.
The study also shows that paid subscriptions to e-papers and e-magazines are used most frequently, followed by paid access to news portals or online services and paid podcasts. The age structure influences these preferences: Older people aged 50 and over are more interested in e-papers or e-magazines, while younger users prefer podcasts.
Nevertheless, about 37 percent of non-payers believe news content should always be free. Those who would pay for editorial content are open to different access models. For example, about 66 percent could come to terms with agreeing to website cookies as an alternative to pay models, while about 54 percent would accept mandatory registration, provided they could continue to access content for free.
Steffen Bax, deputy chairman of the OVK, emphasizes that advertising revenues are still indispensable for financing journalistic content on the Internet. Both paying users and users of free content see advertising as an accepted method of supporting journalistic content online.
The OVK is committed to the development of a new online media platform.
The OVK continues to expect double-digit growth in the digital display advertising market despite the pandemic effects fading. For 2022, they forecast growth of 11.8 percent to more than EUR 5.7 billion. Programmatic advertising is expected to exceed the 4 billion mark and stabilize at a level of 71 percent. Moving image advertising will also generate revenues of EUR 2.1 billion in 2022. In-page advertising will remain dominant, accounting for 63 percent of revenues.
In Germany, life for expats - people who live and work far from home - is apparently anything but easy. A recently published survey by "Expat Insider" reveals that starting a new life in Germany comes with a variety of challenges. From bureaucratic hurdles to a lack of digitalization and difficulties with social integration - the list of obstacles is long.
The international expat community took to the "Expat Insider" report to offer insight into the lives of expats in various countries. Germany ranked 49th out of a total of 53 countries. The situation seems to be even more difficult only in some other countries. The general quality of life in Germany still reaches 18th place in the ranking. Factors such as the healthcare system, travel and commuting infrastructure and leisure opportunities are included here. Germany also does relatively well at work, with 15th place for earnings and career opportunities, work culture, and job security and wages.
However, a different picture is revealed in the social sphere, with Germany landing in 50th place, indicating a lack of friendliness, difficulties with social networking and an inadequate welcoming culture.
Expats complain in particular about the lack of digitization in Germany. The "Expat Essentials Index," which evaluates the infrastructure designed to help foreigners organize a life abroad, places Germany in last place. A lack of digitization, the tight housing market and language barriers pose significant challenges. Germans' preference for cash meets with a lack of understanding.
Expats working in Germany are often in IT, manufacturing and engineering or the financial sector. They come predominantly from the U.S., the U.K. and India. So the hurdles to a happy life in Germany appear to be high for expats, while other countries are rated as much more hospitable and livable.
The "Expat Insider" survey thus makes it clear that while Germany appears to be an attractive work destination for expats, it faces a number of difficulties in the areas of social integration and infrastructure. Improving these aspects could benefit not only expats, but also the country itself by increasing its appeal to international professionals.
A representative survey of 605 companies with more than 20 employees in Germany, commissioned by the digital association Bitkom, shows that only 2 percent of respondents consider Germany to be the leading nation internationally in the field of artificial intelligence (AI).
Nevertheless, 25 percent of respondents rate German companies among the world's leaders in AI research.Bitkom President Dr. Ralf Wintergerst emphasizes Germany's long presence in AI research and the outstanding scientists in the country. However, he urges greater use of these strengths for marketable AI solutions.Wintergerst points out that AI is a cross-sectional technology and requires a broad application base in industry.He also criticizes Germany's restrictive rules on the use of non-sensitive data, which would hinder the development of AI.
The survey results show that currently 41 percent of companies see the U.S. as the leading nation in AI, followed by China with 23 percent.Japan, Israel and Taiwan are well behind at 7 percent, and 4 percent each.The forecast for 2030 looks similar, with 38 percent of companies seeing the U.S. as the leader, 25 percent seeing China, and only about 1 percent seeing Germany.
Bitkom's upcoming Big-Data.AI Summit on September 20 and 21, 2023, in Berlin will address concrete applications of AI in companies, best practices, cross-industry strategies, industry-specific solutions, technologies, trends and societal challenges in the field of AI.