Skills Shortage

A study commissioned by the German economics ministry and whose results were published in a newspaper this week carried probably the most dire warning of how a long-standing skills shortage could put a dent in the resurgent German economy if steps aren't taken to tackle the problem.

Quoting from the study, German daily Süddeutsche Zeitung said the economic loss resulting from unfilled jobs could reach a two-digit figure in the billions.

"This could reach up to one percent of gross domestic product," the paper said, citing the study. That would amount to more than 20 million euros ($26.8 million), it added.

Acute skills crunch

German business and industry representatives have for years complained of a lack of qualified professionals in critical hi-tech sectors, warning that it could seriously undermine the country's competitiveness in an increasingly globalized world.

The study concluded that the number of jobs that were either filled after delays or weren't filled at all was in the six-digit region. The crunch is particularly acute in areas such as engineering, the metal and electronics industry and the services sector. Young brains are missing in academic subjects such as mathematics, natural sciences and technology, the study said. It calculates that Germany would lack up to 95,000 engineers and 135,000 scientists by 2014.

The study is likely to provide food for thought for the German government when it meets later this week for a special cabinet retreat to discuss the skills shortage, among other issues.

The topic has long been a sticking point in Germany with politicians divided on easing tight immigration restrictions for highly-qualified professionals. Some argue that instead of relying on foreign skilled labor, German businesses should focus instead on training students and budding scientists in the country.

Immigration still an ideological issue

German Education and Research Minister Annette Schavan has long favored lowering the unrealistically high income bar for immigrants.

So far, skilled professionals can only come to Germany if they can prove they earn an annual salary of 85,000 euros. Schavan wants to reduce that limit to between 40,000 and 60,000 euros -- a figure that many business leaders say is still too high.

But German Economics Minister Michael Glos, whose ministry commissioned the latest study, remains reserved about easing immigration restrictions for skilled labor. In a paper published by his ministry, he merely spoke of a "partial opening" of the German labor market for certain segments, of reducing the number of school dropouts and of easing job restrictions for graduates from German universities.

In an editorial in its Monday edition, the Munich-based Süddeutsche Zeitung urged Chancellor Angela Merkel's government to finally take steps to remedy the skills crisis in Germany.

"Immigration is handled ideologically instead of objectively in the governing coalition," the paper wrote, adding that politicians still feared the effect that opening the doors to skilled labor could have on Germany's 3.7 million unemployed. "But that doesn't help anyone -- not even the jobless," the paper said.

Germany lags on a European level when it comes to attracting much-needed skilled professionals. Britain, Ireland and France lure foreign professionals with time-limited visas. Sweden, Denmark and the Netherlands have courted qualified foreigners with tax breaks.