Daily Management Review

Study Shows Historic Low Unemployment In Germany Making Hiring Difficult


10/10/2018




A recent study conducted by the Institute for Employment Research (IAB), which is the research institute of Germany's Federal Employment Agency, claimed that the historically low rates of unemployment in the country has made it very difficult for companies an firms there to find the right candidate to fill up their vacancies. 
 
The study calculated that the so-called unemployed-to-vacancies ratio ion the German economy has touched the lowest since the year of 1992 in 20917 when there were just two jobless Germans for every occupational opening. The study has further concluded that the booming labor market in Germany and the strong economic growth over the years has resulted in an increase in the percentage of new positions for which many German companies was finding it difficult to hire the right candidate and the number was about 12 per cent in 2003 and reached about 43 per cent in 2017.
 
The outcome of the study was based on an annual survey that was representative. This report has been prepared since 2015 by the Nuremberg-based researchers where German companies were polled and the latest survey clearly indicate that the participating companies are finding it difficult to recruit the right candidate for vacancies and this has been their single biggest challenge operationally.
 
"Since the mid-2000s we can observe an almost continuously rising demand for personnel which coincided with an only briefly-interrupted economic growth and falling unemployment," the study said. The research conclusion also stressed that the current trends were indicative of "growing labor market pressures" that is being experienced by the polled German companies.
 
The report also found that despite the shortage in the labor market because of the high rates of employment, companies were not very eager to hire at higher salaries as only about 16 percent of companies participating in the survey acknowledged that they had to shell out more in compensation to hire the right candidate in 20917. But even that number was much lower when compared to experiences of the same employers in 2004 where only six percent had to shell out higher salaries to attract the right candidate to full up vacancies.
 
The historically low unemployment rates in the country also meant that some of the positions have had to remain unfulfilled for longer periods than the recruiters had anticipated which was another of the problems for German business in addition to some of them having to shel;l out more for hiring.
 
During the entire 2017, about 3.65 million new staff into socially-insured (and hence generally more stable) forms of work was hired by companies according to the estimates of the IAB. There is currently job opening for 1.2 million people in Germany according to recently published data which is also the highest in 25 years.
 
The study was conducted during the end of 2017 and had included some 14,600 companies as respondents to the survey.
 
(Source:www.xinhuanet.com)






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