Germany's skilled trades face 200,000 worker shortfall

Germany's skilled trades sector faces a shortage of an estimated 200,000 workers, according to the German Confederation of Skilled Crafts (ZDH).

At the end of December, 119,565 vacancies were registered with the Federal Employment Agency, ZDH said. Many businesses do not report openings, leading the ZDH to estimate the actual shortfall at 200,000, slightly below last year's level.

The labour gap is taking a toll on the sector. The ZDH expects only modest revenue growth of 1% in 2026, but unlike larger industrial firms, most craft businesses are not cutting jobs on a large scale.

Employment could fall by 60,000 this year, largely due to retirements and voluntary business closures as owners leave the industry or lack successors.

The weak economy has slightly eased the shortage of apprentices. In 2025, 16,213 craft apprenticeships went unfilled, nearly 2,900 fewer than the previous year, but roughly one in nine positions remained vacant. These figures include only positions reported to the Federal Employment Agency.

Small firms, particularly those with up to four employees, are under pressure. Many owners give up operations because they cannot find successors or face rising burdens from bureaucracy, taxes, social contributions and energy costs.

ZDH President Jörg Dittrich acknowledged that the government has provided important impetus but urged faster and deeper reforms, especially in bureaucracy, taxation, energy pricing and social levies.

He stressed that the government will now be judged on whether it has the courage to carry out structural reforms decisively.