Struggling economy finds relief in the increase of IT professionals available
In the heart of Europe, Germany is grappling with a deepening skilled labor shortage, particularly in the IT sector. According to Bitkom, the digital industry association, about 85 percent of companies with at least three employees still complain about a shortage of IT specialists [1]. This shortage is driven by a combination of demographic trends, slow digital transformation, recruitment and retention difficulties, and competitive labor market dynamics.
One of the key factors is the demographic development in the IT sector. Many Baby Boomer IT specialists are retiring, while fewer young people are following [1]. This trend, coupled with the economic downturn and geopolitical uncertainties, has led companies to be cautious in new hires or even reduce IT positions [2].
Despite the ongoing shortage, companies are increasingly leveraging Artificial Intelligence (AI) to streamline recruitment. AI tools are being used for automated candidate screening, chatbots, and objective ranking systems, helping to speed up hiring [1]. However, these tools do not fully solve the fundamental lack of qualified IT professionals.
The economic environment also plays a significant role. Recession pressures and layoffs concentrated mainly in traditional industries rather than in IT have affected overall job availability and hiring dynamics [2]. Additionally, relatively high salary thresholds and visa requirements for IT specialists pose recruitment challenges, despite efforts to attract foreign talent [4].
Interestingly, President Trump's policies have made the USA less attractive for foreign IT specialists, according to 45 percent of companies in the Bitkom survey [5]. On the contrary, 21 percent of companies see the opportunity to bring IT specialists from the USA to Germany [5]. Moreover, 27 percent believe it is now easier to bring IT specialists from non-EU countries to Germany instead of the USA [6].
The digitalization of companies, administrations, and authorities is progressing, requiring more rather than fewer IT experts [7]. This increased demand is further boosted by the expectation that AI will create additional demand for IT specialists in companies, with 42 percent anticipating such an increase [4].
The current political situation also improves the chances of German companies in the competition for international IT specialists [8]. However, the shortage of IT specialists is projected to worsen, with over seven million skilled worker gaps forecast by 2035, including approximately 109,000 unfilled IT roles currently [1][3].
In a positive note, the number of unfilled IT positions in Germany has decreased from 149,000 two years ago to approximately 109,000 currently [9]. Every twelfth company (8 percent) is increasingly relying on Artificial Intelligence [10]. Yet, 16 percent of companies expect positions that cannot be filled anyway to become redundant due to AI [11].
As Germany navigates this complex landscape, the persisting IT specialist shortage remains a significant challenge. AI tools alone cannot fully overcome the structural and demographic factors contributing to the shortage. A comprehensive approach that addresses these underlying issues will be crucial for the future of the German IT workforce.
- To address the persistent IT specialist shortage in Germany, businesses in the technology sector are turning to education-and-self-development platforms, offering training programs to upskill existing employees and attract new talent.
- As the demand for IT specialists continues to grow with the digital transformation of businesses, finance institutions, and administrations, there is a need for policies that focus on business, technology, and education-and-self-development collaborations to cultivate a skilled workforce and bridge the skills gap.
