The share of German companies reporting a shortage of skilled workers rose to 23.2 percent in July, up from 21.1 percent in April, according to the Ifo Institute, as a modest economic recovery begins to tighten the labour market.
The increase was driven by sharp jumps in telecommunications, where the shortfall nearly doubled to 31.1 percent, and in legal, tax and auditing services, where 64.7 percent of firms reported difficulty finding qualified staff. Manufacturing saw a 4.5-percentage-point increase to 18.7 percent, while construction remained elevated at 32.6 percent.
The overall figure remains well below the long-term average of 31.7 percent, suggesting weak economic conditions have so far capped labour demand. Separately, the Federal Association of German Cooperative Banks doubled its 2026 GDP growth forecast to 1.0 percent, signalling growing confidence in a broader recovery.