November 18, 2010

IMMIGRANTS IN THE DRIVER'S SEAT:

Demographic Future Is Now: Eastern Germany Confronts Skilled Labor Shortage: For years, demographers have been warning that Germany could face a labor shortage as its population ages. In eastern Germany, such scarcities have already become reality. Competition for talent is fierce -- and businesses are becoming more generous. (Markus Dettmer, Alexander Neubacher and Janko Tietz, 11/18/10, Der Spiegel)

[A]n internal survey conducted by the Federal Employment Agency among its 176 local employment agencies shows that the lack of skilled workers is already a reality today. Two-thirds of the participating agencies reported significant bottlenecks in many areas. In July, there was an average of 7.5 unemployed workers for every open position. The study lists 16 professions, from plumbers to engineers to doctors, in which the problems are especially glaring.

The microcosm of southern Thuringia offers a telling example of what has become symptomatic for parts of the east, particularly along the former border between East and West Germany and the booming regions surrounding the cities of Dresden, Jena and Potsdam. In the district around Eisfeld, not far from the border of Bavaria, for example, the number of open positions was 48.8 percent higher in October 2010 than it was in October of 2009. Unemployment there is 6.7 percent, which is about the same as the average in the West. There are already about 16,000 commuters who drive to work every day from the West to the East.

For a number of reasons, demographic changes affected the East earlier and more strongly than the West. Not long after German reunification, the birth rate plummeted in the East -- meaning that since 2006, significantly fewer young people have been entering the work force.

In addition, many eastern Germans, especially young people, are moving to the West -- a trend that has continued unchecked for years. The eastern states have lost about 1.5 million workers since 1990. If the trend continues, the population between the ages of 15 and 64 in the East will be cut in half, to 4.5 million, by 2050. At the same time, large groups of older people are entering retirement.

A historic shift occurred in southern Thuringia this year. For decades, the number of high-school graduates in the state had exceeded the number of training positions. That relationship has now been reversed for the first time.

Posted by Orrin Judd at November 18, 2010 6:32 AM
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