How bad is Germany's skilled worker shortage in 2026?

There aren't many things that politicians in Germany agree on. But one is that Germany is in desperate need of skilled workers.  

The figures speak for themselves: at the start of 2026 more than 617,000 jobs across Germany remained unfilled, according to figures from Statista.

While the shortage of skilled workers eased slightly in 2025 due to the economic downturn, it is expected to rise again in the long term amid demographic changes. Essentially older people are retiring and not enough people are entering the workforce. 

A new report from information platform Mediendienst Integration compiles recent figures and projections to show the state of the situation, while highlighting the need for talent from abroad to support Germany's labour market. 

How bad will things get?

By 2029, there will be a shortfall of around 440,000 workers, despite immigration and more people in Germany being encouraged into work, according to an estimate by the Labour Ministry's Skilled Labour Monitoring programme.

The Mediendienst report notes that this gap is significantly greater than previously assumed, with earlier estimates actually predicting a ‘surplus’ of 29,000 workers. The main reasons for the revised forecast are updated statistics on demographic change and a decline in immigration in 2025.

However, there is encouraging news for the outlook in years to come.

Previously, it was assumed that in the long term, net immigration to Germany of at least 400,000 people per year would be needed to offset the effects of an ageing population. This was based on a 2021 estimate by the Institute for Employment Research (IAB).

However, a more recent forecast by the Bertelsmann Foundation from November 2024 assumes a lower requirement. Researchers there found an annual net immigration of between 288,000 and 368,000 people will be needed in Germany by 2040.

In addition to immigration, politicians in Germany are looking at other strategies to tackle the skills shortage, including by encouraging more women into the workforce and providing more opportunities for workers to upskill. 

READ ALSO: Why Germany struggles to attract the foreign workers it needs

Which occupations are seeing the worst shortages?

Skilled workers have become significantly scarcer in many occupations in recent years. Germany's Employment Agency (BA) recorded shortages in 163 occupational groups by the end of 2024. The figure has fallen since then, but remains at a very high level.

By way of comparison, in 2017 Germany logged shortages in 25 occupational groups and by 2022 there was a shortage of talent in 200 occupational groups.

As of 2024, there is a shortage of skilled workers in roughly one in seven of the occupations surveyed.

There is a particularly high demand in the care and healthcare professions, as well as in the skilled trades and construction trades. There are also significant shortages in technical fields, sales roles, the catering sector and among drivers in freight transport.

These shortages often mean that roles remain unfilled for long periods of time. For example, in elderly care, vacancies in 2025 remained vacant for an average of more than six months (222 days).

READ ALSO: Germany's skilled labour shortage intensifies across industries

Where is Germany trying to recruit workers from?

The coalition government is pushing to make Germany more attractive country for non-EU nationals to work and study.

One way they are hoping to make the process of immigration for skilled workers easier is through the so-called Work and Stay Agency.

With plans to launch sometime this year, the initiative is aimed at helping non-EU workers settle in Germany. It will act as a "One-Stop-Government", connecting visa offices the Federal Employment Agency and immigration offices.

Special efforts by the Labour Ministry are focused on13 countries: Brazil, Mexico, Colombia, Ecuador, Morocco, Tunisia, Egypt, Jordan, India, Indonesia, Uzbekistan, Ghana, and the Philippines.

READ ALSO: Which countries have an immigration deal with Germany?

However, there are also mixed messages from politicians when it comes to immigration, with experts arguing this is putting foreigners off from choosing Germany over other countries.

Variety of workers needed

Researchers at Mediendienst point out that the debate on labour migration in Germany usually refers to "skilled labour migration".

However, in many sectors of the economy, including the service sector, unskilled workers are also urgently needed.

"It would therefore often be more accurate to speak of a 'shortage of both skilled and unskilled workers'," says the report.