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Lydia Malin / Simon Schumacher IW-Report No. 2 4. January 2024 Pharmaceutical industry: Increasing pressure on the labor market

The shortage of skilled workers poses significant challenges for pharmaceutical companies in Germany and is expected to become increasingly problematic in the context of demographic changes. Concerning Germany's positioning in the international competition among innovative pharmaceutical locations, this shortage could become a hindrance.

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Increasing pressure on the labor market
Lydia Malin / Simon Schumacher IW-Report No. 2 4. January 2024

Pharmaceutical industry: Increasing pressure on the labor market

German Economic Institute (IW) German Economic Institute (IW)

The shortage of skilled workers poses significant challenges for pharmaceutical companies in Germany and is expected to become increasingly problematic in the context of demographic changes. Concerning Germany's positioning in the international competition among innovative pharmaceutical locations, this shortage could become a hindrance.

Among all Occupations throughout the entire pharmaceutical value chain, shortages of skilled workers are getting significantly stronger. Not only are difficulties in filling positions intensifying in IT professions relevant to the pharmaceutical industry, which are required by pharmaceutical companies as well as other industries to drive digital transformation and are scarcely available nationwide in the job market. Companies are also finding it increasingly challenging to find suitable personnel in pharmaceutical-related occupations within 'production' and 'sales'. Here, the shortages are primarily driven by occupations where pharmaceutical companies compete with other industries for available skilled workers.

The regionally concentrated pharmaceutical industry is differently affected by more severe staffing difficulties across all considered cluster regions. The affected job profiles in these regions vary also according to the economic focus of the companies. Among other factors, specific pharmaceutical core professions, which require industry-specific qualifications and in which employees are employed more frequently in the pharmaceutical industry, are now more affected by shortages. However, whether this is related to the regional specialization of companies or the generally strained labor market situation in the region cannot be conclusively answered within the scope of the quantitative analysis. Urgent action is required to establish both political frameworks to secure the future demand for skilled workers and incentives for companies, in the increasingly competitive environment for available skilled workers, to find the right measures for securing skilled workers in the short to medium term.

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Increasing pressure on the labor market
Lydia Malin / Simon Schumacher IW-Report No. 2 4. January 2024

Pharmaceutical industry: Increasing pressure on the labor market

German Economic Institute (IW) German Economic Institute (IW)

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Immigration can compensate for ageing
Alexander Burstedde / Jurek Tiedemann IW-Report No. 33 9. August 2024

IW labor market forecast 2027: Immigration can compensate for ageing

This study is the annual update of the IW labor market extrapolation with data up to 2022. The methodology is described in detail by Burstedde (2023). The update shows how employment and skilled labor shortages could develop during the next five years if the ...

IW

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Wido Geis-Thöne IW-Report No. 22 4. May 2024

Securing skilled workers through immigration to universities

Against the backdrop of demographic change, Germany is increasingly dependent on skilled labour from abroad to secure growth and prosperity.

IW

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