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Demographic change in Germany as a brake on growth and prosperity
The shortage of skilled workers is already one of the biggest problems of our time. According to Labor Minister Hubertus Heil, it is one of the biggest obstacles to growth and prosperity in Germany. In the near future, i.e. in the next 10 to 20 years, we can expect an even more significant decline in the supply of skilled workers due to demographic change. These bottlenecks can have a very negative impact on economic growth and productivity.
The upheaval in the German labor market is inevitable. The transition of baby boomers into retirement amplifies the effect and leads to an even greater decline in the number of skilled workers available on the labor market. Accordingly, the competitiveness of the German economy and prosperity are in danger.
A survey by the Institute for German Economics in 2021 showed that for two-thirds of the companies surveyed, securing skilled workers is one of the top priorities and is necessary for ensuring their business model.
You can only survive in international competition if you have enough innovation impulses, i.e. if innovative products and new technologies are developed. Research, start-ups and specialists from the STEM field are necessary for innovations. According to the German Economic Institute's study from 2021, considerable demographic replacement needs are to be expected in these areas, since many of the STEM graduates who are employed today are already close to retirement age. Added to this is the steadily declining number of graduates in this segment. Hence higher demand for STEM workers cannot be covered sufficiently.
Immigration makes a significant contribution to securing skilled workers in Germany. Unfortunately, despite efforts and the new legal framework, this cannot be sufficiently guaranteed. The problems here are diverse and have recently been associated with a strong media presence.
Nearshoring, especially IT nearshoring, represents part of the solution to these problems for us. Cooperation with companies from neighbour countries and the possibility of securing the need for IT specialists offer synergy effects for German companies. The use of innovation potential by securing human capital resources contributes to competitiveness on a global level. At the same time, our neighbour European countries benefit from the increase in order volume and indirectly from the promotion of MINT professions.
dc nearshoring wants to offer solutions and promote Germany's innovative strength at the corporate level.