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IW-Report No. 2 4. January 2024 Lydia Malin / Simon Schumacher 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
IW-Report No. 2 4. January 2024 Lydia Malin / Simon Schumacher

Pharmaceutical industry: Increasing pressure on the labor market

Lydia Malin / Simon Schumacher 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
IW-Report No. 2 4. January 2024 Lydia Malin / Simon Schumacher

Pharmaceutical industry: Increasing pressure on the labor market

Lydia Malin / Simon Schumacher German Economic Institute (IW) German Economic Institute (IW)

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Making Apprenticeships a Success: From Marketing to Hiring
IW-Report No. 38 11. September 2026 Paula Risius et al.

Making Apprenticeships a Success: From Marketing to Hiring

In-company vocational training is a key factor in securing skilled labour. The first step in investing in future employees is to approach and recruit new apprentices. For many companies, filling the apprenticeship positions they offer is a challenge.

Paula Risius / Dirk Werner / Philip Herzer / Fritz Orange / Regina Flake / Franziska Arndt / Yasin Küçükyavuz / Edgar Schmitz IW

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IW-Kurzbericht No. 96 28. November 2025 Michaelle Nintcheu

Skilled immigration via the Opportunity Card

The Opportunity Card is one of the most popular new provisions of the German Skilled Immigration Act and makes it easier for third-country nationals to access the labour market – but the regulation has been difficult to implement so far and is still unknown to many employers.

Michaelle Nintcheu IW

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