Ifo Manager Survey "Specialist Shortage"
October 2007

The insufficient number of specialists is a considerable problem for many enterprises in Germany. Half of the surveyed participants currently cannot fill highly qualified positions because they lack suitable applicants; for 13 percent this is frequently the case, for 37 percent the problem occurs occasionally. Particularly affected are manufacturing and the service sector. The larger the enterprise, the more strongly the shortage of specialists is felt.

As a consequence of the insufficient supply of specialists, some orders are not taken on (43 percent of the enterprises) or investments are not made (43 percent). A shift of production abroad, however, is being considered by only 7 percent of the firms.

In order to guarantee a sufficient supply of specialists, 39 percent of the enterprises have established contacts to universities. For this, large-scale enterprises obviously have better possibilities (68 percent) than small firms (30 percent). The instrument used most, however, to cope with the shortage of specialists is in-house training: 29 percent of the surveyed participants offer or are planning a better work-life balance for their personnel. This is more frequently cited by large than by small firms. In order to be more attractive for specialists, 20 percent of the firms pay higher wages, and here the differences between company size categories are not significant.

The recruitment of suitable personnel abroad plays only a subordinate role (4 percent). The greatest obstacle in the way of using this option is the high income threshold set by the German government for a foreigner to obtain a work permit, followed by language problems and bureaucratic stipulations.

In order to cope with the specialist shortage, 69 percent of the enterprises insist that policy-makers implement suitable educational policies. This is favoured in particular by large enterprises (89 percent). Improved training at universities was stated by 49 percent of the firms. An improved work-life balance (42 percent) as well as keeping older employees in their jobs longer (41 percent) seem to be a good strategy for many firms. Facilitating the hiring of foreign employees is considered suitable by 23 percent.

524 enterprises participated in the survey, which was conducted in October in manufacturing, construction, wholesaling, retailing and the service sector.