Germany's labour market at a crossroads

How well is Germany really prepared for the future?

The latest German Deep Dive Report 2025 by Oxford Economics for Hays shows that Germany's labour market is strong, but its success is being put to the test.

The report provides a reliable database that companies can use to align their HR strategy, location selection and recruitment activities. It enables them to identify potential and risks at an early stage and make confident decisions.

► Download the full report at the end of this article now!
 

Strengths and weaknesses at a glance

Germany impresses with high productivity, stable wages and an exemplary education system.

But despite these strengths, there is a shortage of skilled workers: around half of all vacancies are in shortage occupations. Migration remains central but is slowed down by language barriers and bureaucratic hurdles.

At the same time, the energy transition, digitalisation and changes in the automotive industry are rapidly transforming the economic landscape. Flexibility and new skills are in demand.
 

Three ideas for businesses

1. Think internationally about talent: Break down linguistic and cultural barriers to use immigration as a driver of growth.
2. Strengthen the learning culture: Strategically promote further training and internal mobility.
3. Help shape the framework conditions: Advocate for modern, innovation-friendly regulation.
    

Conclusion

Germany's labour market remains strong, but future viability can only be achieved through adaptation. The full German Deep Dive Report 2025 shows how companies can respond to this.

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