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Decrease in IT job openings in Germany: a 26.2% drop observed in 2024

Struggling economic growth in Germany negatively impacting IT sector, as indicated by a study by the Institute of the German Economy in Cologne (IW). The average vacant IT positions were found to have decreased by 26.2% from 2023 to projected figures for 2024, as reported by newspapers owned by...

Decrease in IT Job Openings in Germany: A Drop of 26.2% Occurs in 2024
Decrease in IT Job Openings in Germany: A Drop of 26.2% Occurs in 2024

Decrease in IT job openings in Germany: a 26.2% drop observed in 2024

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In a recent study, it was found that the significant decrease in open IT positions in Germany in 2024 is primarily linked to overall economic weaknesses. The study, conducted using data from the Federal Statistical Office and the skilled worker database of IW, revealed that despite the German ICT sector growing by 3.3% in revenue in 2024, reaching about USD 253.2 billion, total foreign investment, especially from the US, decreased by 27%.

This decline in foreign investment, cited as a deterrent due to steep taxes, complex bureaucracy, a stagnating economy, and high energy costs, has contributed to slower growth or decreases in open IT positions compared to previous years. The German economy shows signs of continuing weakness with unemployment rising to nearly 3 million in July 2025, and job creation remaining sluggish. Companies are hesitant to post new jobs despite a steady inflation rate around 2%, reflecting low economic dynamism and cautious hiring behavior.

Although the IT & Tech sector still has about 96,000 openings in 2024, suggesting sustained demand, the decline in American investments and economic stagnation likely contributes to this slower growth. The stagnation in the broader economy, with limited wage growth and structural challenges such as a shrinking workforce and bureaucratic hurdles, affects employers' willingness and ability to expand their IT workforces, thus reducing available job openings.

Interestingly, the demand for IT personnel in the areas of legal and tax consulting, as well as auditing, has increased significantly, with 1,770 open positions, around six times as many as in 2023. However, positions requiring a master's degree or diploma were particularly affected, with a decrease of 33.7%.

Despite the decline in open positions, the shortage of skilled workers in the IT industry remains high, with more than 13,500 open positions remaining unfilled in the previous year. Across all professions, the number of open positions for qualified workers decreased by only 4.4% between 2023 and 2024.

Regarding IT services, study author Jurek Tiedemann also cited the relocation of services abroad as a reason for the decline in open positions. However, no connection could be established with the use of artificial intelligence in the decline of IT positions. Companies expect an increasing demand for IT specialists through the use of AI.

The number of average open positions in IT professions decreased by 26.2% in 2024 compared to 2023, leaving 46,431 positions unfilled, 16,500 fewer than the previous year. Despite the decline in open positions, the situation regarding skilled workers in the IT industry remains very tense, according to Tiedemann.

In summary, the decline in open IT positions in Germany relates closely to broader economic challenges including reduced foreign direct investment, rising unemployment, cautious corporate hiring, and structural economic stagnation, which together constrain growth and hiring in the IT industry despite its revenue growth.

  1. The decrease in foreign investment, particularly from the US, in the German economy, influenced by factors such as high taxes, complex bureaucracy, a sluggish economy, and high energy costs, might significantly hindered the growth and creation of open IT positions in the business sector.
  2. The report also highlighted an unexpected increase in the demand for IT personnel within sectors such as legal and tax consulting, auditing, where there were 1,770 open positions, a significant rise compared to the previous year, suggesting a possible shift in the finance industry's focus regarding IT requirements.

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