Struggling economic climate eases shortage of tech professionals
In a recent survey conducted by Bitkom, the digital industry association, it was revealed that the shortage of IT specialists in Germany remains a significant challenge, despite a decrease in unfilled positions over the past two years.
The survey found that about one in four companies (27 percent) expects to reduce positions through AI, while 42 percent anticipates AI to create additional demand for IT specialists. This paradoxical situation highlights the ongoing need for IT experts in the face of digitalization, despite economic slowdown and geopolitical uncertainties.
Alarmingly, 85 percent of companies with at least three employees still complain about a shortage of IT specialists. The number of unfilled IT positions in Germany has decreased from 149,000 two years ago to approximately 109,000, but the underlying issue persists due to stringent hiring requirements, evolving skill demands, and systemic obstacles to integrating international and domestic IT specialists into Germany’s tech economy.
Visa and immigration hurdles continue to be a major challenge. Although Germany has streamlined visa processes like the IT Specialist Visa and the EU Blue Card for shortage occupations, meeting these requirements remains complex and can delay onboarding. The process requires meeting salary thresholds, proving relevant IT experience, and navigating strict documentation and compliance standards, which can be challenging for international candidates and employers alike.
High qualification and salary criteria also pose obstacles. The EU Blue Card and IT Specialist Visa require proof of significant professional IT experience and jobs that meet specific salary thresholds. Although these criteria broaden the talent pool compared to degree-only rules, they still restrict access for many potential candidates, slowing fills for IT roles.
Moreover, there is a mismatch between labor market needs and available talent. Germany is undergoing a dual transformation towards digitalization and decarbonization, which increases demand not only for traditional software developers but also new green tech specialists and hands-on technical trades. Many of these roles require on-site presence and specific skill sets that are hard to fill, even if the number of unfilled IT software jobs decreases.
Lingering structural issues and political environment further exacerbate the problem. Language barriers and potential political shifts toward more restrictive immigration policies may discourage international IT talent from applying. Smaller companies especially struggle to hire despite vacancies being somewhat reduced, indicating persistent mismatch problems across regions and sectors.
The demographic development in the IT sector also presents challenges. Many baby boomer IT specialists are retiring, and fewer young people are entering the field. To address this, companies are increasingly looking overseas, with 21 percent of companies seeing the opportunity to bring IT specialists from the USA to Germany.
Bitkom President Ralf Wintergerst stated that companies are being cautious in hiring or reducing IT positions due to the economic slowdown and geopolitical uncertainties. Despite this cautiousness, he noted that the digitalization of companies, administrations, and authorities continues to create demand for IT experts.
In essence, while official statistics may show fewer open IT positions, the underlying shortage exists because of stringent hiring requirements, evolving skill demands, and systemic obstacles to quickly integrating international and domestic IT specialists into Germany’s evolving tech economy.
- Despite the ongoing digitalization, 27 percent of companies expect to reduce positions through AI, indicating a potential need for more artificial-intelligence experts to manage and implement these technologies in business and finance.
- The persistent shortage of IT specialists in Germany, particularly in the face of increasing demand for green tech specialists, underscores the importance of technology and artificial-intelligence in shaping the future of businesses and the economy.
