The German economy is facing a significant drag: the increasing shortage of skilled workers. According to a study by the Cologne Institute for Economic Research (IW), the economy could produce an additional 49 billion euros worth of goods and services this year if the current demand for around 573,000 specialists were met. This would increase the production potential by 1.1 percent. By 2027, the additional added value could even grow to 74 billion euros.

The IW uses conservative assumptions for these forecasts, assuming that every qualified unemployed individual will find a job – an assumption that seldom holds in reality. "The actual costs of the skills shortage are likely to be significantly higher," say the authors of the study, who emphasize that the gap has been growing steadily since 2010.

To alleviate the shortage of skilled workers, the IW experts recommend increasing qualified immigration, which is facilitated by the revised Skilled Immigration Act. Additionally, more childcare options and tax changes in the taxation of married couples could integrate more women into the labor market. Simplified employment of older individuals could also help close the gap.

These challenges and solution approaches are being discussed intensively, particularly in the context of the upcoming parliamentary elections and global economic changes.