Germany’s population is aging, which has led to a labor shortage crisis in the country. According to a report by the German Federal Statistical Office, a record 45.9 million people were employed in the fourth quarter of 2022. However, over half of German companies reported struggling to find skilled workers to fill job vacancies.
To tackle this issue, digitalization could play a significant role in enhancing the workforce through the integration of robots and technology. The new Chancellor, Olaf Scholz, has made digitalization a priority since taking office in November 2021, with a coalition contract called “Daring More Progress,” pledging to implement digital technologies across the business world.
Aging populations tend to be faster at digitalizing their workforces, with Germany having the largest aging population in Europe. It is no surprise that the country, along with Japan and South Korea, is utilizing technology in the workplace.
Digitalization can manifest in various ways, with technology added to make workflow more efficient and cost-effective. Research conducted by Gallup suggests that 37% of Germans believe that technological changes will increase their work productivity. Only 1% of those surveyed believed that technology would decrease productivity, and 62% of participants thought that deploying more technology wouldn’t have an impact.
According to Ulrich Walwei, vice director of Germany’s Institute for Employment Research, there won’t be significant job losses as a result of digitalization. Walwei explained that while there is an automation effect that can save labor, it gives consumers and firms opportunities to use their resources in a different way.
Robots can also facilitate older employees to stay in the workplace longer by outsourcing more physically intensive tasks to them. This allows older workers to continue contributing their valuable skills and experience in a safe and comfortable manner.
The German economy has the largest stock of robots in the European Union, according to a 2020 report by the European Commission. Almost half of the total EU supply of robots is in Germany, and most of them are installed in the automotive sector. The food and beverage, industrial machinery, and electronics industries have also taken on a significant number of mechanical employees.
However, Germany still faces digital skills gaps and needs to address them to keep up with the increasing pace of digitalization. Walwei noted that digital competency is something that needs to be trained very early and needs to be a part of regular workforce training programs.
In conclusion, the integration of robots and digital technology in the workplace has the potential to address Germany’s labor shortage crisis, enhance productivity, and increase older workers’ ability to continue contributing to the workforce. The goal of digitalization is to augment human capabilities, not replace them, and its successful implementation could lead to more fulfilling and engaging jobs for workers.
