October 27, 2011 | News

Labor deficits hits mainly small business

What do you do when labor is short? This was the topic of a panel discussion held at the MPIDR. The conclusion of the experts: The shortage of labor mainly hits small businesses - but there is a way out.

The decline in birth rates in Eastern Germany after German unification resulted in smaller cohorts. These are now coming of age, and the deficit of workers is becoming perceptible, raising the question of how firms and local authorities respond to the challenges ahead. These aspects, presented by Joshua R. Goldstein, were the starting point of a public debate titled “The youth gap in Eastern Germany”, which took place at the Max Planck Institute for Demographic Research on October 4th, 2011.

Officials from the Department of Science, Education and Culture, the Chamber of Commerce and Industry, the Chamber of Crafts, and the shipping company AIDA Cruises, the Rostock Job Center, and the German Society for Demography were invited to present their views. The moderation was moderated by Carsten Klehn, a journalist specialized in economics.

All participants agreed that companies need to adapt to the new situation, a situation where there are more open positions than job applicants and that this is especially difficult for small businesses. According to the experts, small businesses that have invested in their image over the last years have fewer problems to fill positions, indicating that job applicants also take factors other than pay into account when deciding to take up a new job. Working conditions, such as work-family balance, seem to be of great importance to young workers.

Concluding the panel discussion, the participants of the discussion noted that the members of the smaller cohorts who are just now entering the job market are more likely to improve their working conditions than their predecessors.

With an audience of about 80 people, the venue was well attended. And it was a lively one, with discussion participants deeply involved and questions from the audience demonstrating active interest.