A recent study shows that the shortage of skilled labour in Germany will be as high as seven million in 2035.
Employment of foreign workers contributes to growing Germany’s workforce, while Russia plans new legislation to lure back IT workers who left in droves following invasion of Ukraine in early 2022. Meanwhile, India is reportedly considering moving from minimum wage to a living wage and the US job market snaps up tech workers.
Immigration helps Germany’s employment rate
The number of people employed in Germany last year was a record 45.6 million, up 1.3 percent year-on-year, according to early data from the Federal Statistical Office (Destatis).
The service sector in Europe’s largest economy alone accounted for 34.3 million employees, while the immigration of foreign workers and the increased participation of the domestic population enabled Germany’s workforce to grow.
Driven by the demographic effects of an ageing population, the shortage of skilled workers in Germany has been increasing for years, reports Xinhua News Agency.
Without immigration and rising labour force participation rates, the shortage of skilled labour in Germany would be as high as seven million by 2035, according to a recent study by the Institute for Employment Research (IAB).
Russia aims to lure back IT workers
Russia’s buffetted IT sector risks losing more workers in the new year because of planned legislation on remote working, as authorities try to lure back some of the tens of thousands who have gone abroad without prompting them to cut ties completely. This as Russia continues its war with Ukraine, which started in February 2022.
Reuters reports that the government estimates that 100,000 IT specialists currently work for Russian companies overseas and legislation – mooted for early 2023 – could ban remote working for some professions.
Market snaps up tech workers
About 79 percent of US workers who were recently hired after a tech-company layoff or termination landed their new job within three months of starting their search, according to a survey reported on by the Wall Street Journal.
Nearly four in 10 previously laid-off tech workers found jobs less than a month after they began searching, ZipRecruiter found.
“Despite the widespread layoffs, hiring freezes, and cost-cutting taking place in tech, many tech workers are finding re-employment remarkably quickly,” said Julia Pollak, chief economist at ZipRecruiter. “They’re still the most sought-after workers with the most in-demand skills.”
Workers previously employed in other industries, including entertainment and leisure, transportation and delivery as well as manufacturing, also found new jobs quickly, the data showed.
India reportedly considering living wage
The Indian labour ministry is considering a shift from minimum wage to a living wage, according to a report in the Economic Times. The move may play a significant role in helping India to meet its Sustainable Development Goal to eliminate extreme poverty by 2030.
The ministry has reportedly asked officials to look at the economic, social and financial implications.
A minimum wage is the amount required for subsistence and is set by law. The living wage, on the other hand, is necessary for workers to meet their basic living requirements. The difference between the two may range from 10 to 25 percent.
The members of the International Labour Organization (ILO) have also reportedly requested the United Nations to help them with a better understanding of living wages by undertaking peer-reviewed research. India is a founding member of the ILO.