Digitalisation can compensate for a shortage of 1.5 million workers in Germany

Berlin, July 23, 2024: The “Potential Index Germany” study by the Vodafone Institute provides the first specific look at how the increased used of digital technologies could significantly alleviate Germany’s acute shortage of skilled workers. It predicts that the labour shortage could be reduced by some 1.5 million workers by 2035 if digital solutions are comprehensively implemented.

The increased use of digital technologies can reduce the shortage of skilled workers by 1.5 million by 2035.
Accelerated digitalisation can enable 9.9 million additional doctor contacts per year.
With the expansion of digital solutions, public transport could carry 510 million additional passengers per year, saving 361 million car journeys.
Accelerated digitalisation could boost gross industrial value by 72.9 billion euros.
Digital technologies could save up to 4.2 million hours of waiting time when dealing with public authorities.

Digitalisation as a potential solution to the shortage of skilled workers

The shortage of skilled workers is one of the largest challenges facing the German economy and society. The study shows that digital technologies offer significant potential when it comes to alleviating the problem. The implementation of such technologies can make work processes more efficient and enable the optimal usage of human resources. In the four areas examined – environment & mobility, business, health & social affairs, and public administration – efficiency gains from digitalisation could be considerable.

In the healthcare sector, the use of digital technologies could enable up to 9.9 million doctor contacts per year that would otherwise not take place due to staff shortages. The additional contacts are the product of time savings produced by digital systems in both administration and diagnostics. Artificial intelligence, for example, can help doctors quickly recognise pattens and make quick and precise diagnoses. Robots can be used to assist nursing staff and doctors during operations.

The study also presents impressive figures for public transportation: Through accelerated digitalisation, 510 million additional passengers could be carried and 361 million car journeys rendered obsolete. This wouldn’t just ease traffic, but it would also make a significant contribution to environmental protection. From autonomous shuttle buses and real-time journey planning to automated control technology, digital technologies can make a decisive contribution to increased efficiency and safety in public transportation.

The economic benefits of digitalisation are likewise considerable. The increased use of digital solutions could add 72.9 billion euros of gross value to industrial production alone. Accelerated digitalisation could also help maintain Germany’s international competitiveness in industry and slow the relocation of production sites overseas. Automated, real-time data evaluation from production facilities, collaborative robots and digital control processes with IoT and AI technologies can produce faster and smoother industrial processes.

Digital technologies could also significantly boost efficiency in public administration. The study shows that accelerated digitalisation could eliminate up to 4.2 million hours of waiting time when dealing with public authorities. This wouldn’t just increase public satisfaction, but it would also reduce the burden on public officials and improve overall efficiency. Online services such as student aid applications, digital address registration and e-invoices would ensure the quick and easy processing of administrative tasks.

Digitalisierung kann 1,5 Millionen fehlende Arbeitskräfte in Deutschland kompensieren

Regional differences in digitalisation potential

The study revealed significant regional differences when it comes to the potential offered by digitalisation. There is significant potential in the industrialised regions of southern and eastern Germany. These regions are characterised by numerous professions and operations that can be made more efficient with the use of digital technologies. For example, a significant share of activities in areas such as Sonneberg and Dingolfing-Landau, along with the city of Wolfsburg, can be supported digitally. In Wolfsburg, for example, Volkswagen AG and its local suppliers generate significant demand for mechanical and automotive engineering professions, many of which can be automated.

In contrast to such regions, rural areas and regions in northern Germany along with some specific urban areas exhibit less potential when it comes to the implementation of digital technologies. Because of their economic structures, regions like Garmisch-Partenkirchen, Heidelberg and Herne are home to fewer professions that can profit from digital solutions.

These regional differences highlight the need for tailored strategies for the promotion of digitalisation. While in some regions, the focus should be on implementing specific digital solutions, other areas may need more comprehensive support with digital transformation.

“Digitalisation not only provides an opportunity for the alleviation of the shortage of skilled workers. It also offers the opportunity to develop new working models and innovative solutions to social challenges. Especially in structurally weak regions, digital technologies can create new perspectives and provide economic impetus,” says Dr Andreas Sachs, head of the study and project manager at Prognos AG.

About the Study

The study “Potential Index Germany” was carried out by Prognos AG on behalf of the Vodafone Institute. It compares the expected demand for skilled workers at the current rate of digitalisation with a scenario of accelerated digitalisation in 2035. In-depth analysis makes it possible to demonstrate the potential of digital technologies in the areas of environment & mobility, economy, health & social affairs, and public administration. As such, the study shows how digital solutions can alleviate the shortage of skilled workers, increase efficiency in the sectors examined and prevent the loss of private and public services.