Study: German companies could face shortage of more than 700,000 skilled workers by 2029

Germany could lack around 723,000 skilled workers across the country by 2029, nearly twice the estimated shortfall in 2025, according to a study by the employer-linked Institute of the German Economy, or IW.

The institute estimated that almost 370,000 skilled workers were missing last year. By 2029, sales occupations could face the largest gap, with about 39,100 positions unfilled. The study projects shortages of 29,900 workers in childcare and education, 23,600 in social work and social pedagogy, 18,700 in health and nursing care, and 17,400 in electrical construction.

Alexander Burstedde, an IW expert on skilled-worker shortages and the study’s author, linked the projected increase partly to the large number of people expected to retire in the coming years. He also said too few young workers were likely to enter the labor market, while Germany might recruit fewer workers from abroad.

An economic recovery could further increase demand for skilled employees, the study said. The analysis used data available through the end of 2024 and projected labor-market developments through 2029 based on those trends. It also shows how the shortage could develop if current patterns continue.