Shortage of skilled workers in Germany rises to all-time high
August 3, 2022, 7:45 am

Shortage of skilled workers in Germany rises to all-time high

Heidelberg is a town on the Neckar River in southwestern Germany. It’s known for venerable Heidelberg University, founded in the 14th century (File photo: Pixabay)

Almost one in two companies in Germany were affected by a shortage of skilled workers, the highest level ever recorded, according to a company survey published by the Munich-based ifo Institute on Tuesday (August 2), the Xinhua reported.

"More and more companies are having to cut back on business because they simply can't find enough staff," said ifo labor market expert Stefan Sauer. "In the medium and long term, this problem is likely to become more severe."

According to ifo, service providers were most affected by the labor shortage, particularly in the event and hotel industry, where two in three companies reported staff shortages.

Staff shortages in the entire hospitality sector including restaurants were not due to recent layoffs and people switching jobs, according to a recent study by Institute for Employment Research labor market researchers. "The main reason lies in a failure to hire," the authors found.

The industry association DEHOGA is suggesting to simplify immigration rules so that refugees could be better integrated into Germany's labor market.

Munich-based ifo Institute showed service providers were most affected by the labor shortage, particularly in the event and hotel industry, where two in three companies reported staff shortages - Photo. Pixabay

"We now need fast and pragmatic measures to recruit employees," said DEHOGA President Guido Zoellick.

Despite the labor shortage in Europe's biggest economy, the number of temporary workers from countries outside the European Union (EU) registered in Germany more than tripled over the past decade, according to the Federal Statistical Office (Destatis).

Ukraine accuses EU countries, including Germany, of blocking funds

Minister of Labor Hubertus Heil and Minister of the Interior Nancy Faeser plan to lower the income threshold for recent graduates applying for a blue card that allows working in the country, "making it easier for well-educated young people to start their careers in Germany."

Key points of an upcoming reform of the country's immigration law are to be presented in September, according to government sources.

Climate change extreme weather costs Germany billions annually

As Germany's baby boomer generation is retiring, structural changes in labor supply due to the demographic development will cost billions of euros, according to a study by the German Economic Institute (IW) from last year.

Over the next 15 years, the country's labor market will lose more than 5 million workers, according to the study. As a result, Germany's economy was set to "change drastically."

Source: Xinhua

Nancy Pelosi meets Taiwan President Tsai, angering Beijing Pelosi's Taiwan trip .. America provokes China

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.