Digital future or structural change? Germany's economy in crisis mode!

Digital future or structural change? Germany's economy in crisis mode!

The Research and Innovation Expert Commission (EFI) has published its latest findings on the future of the German world of work. In their report, which was handed over to the federal government, it becomes clear that the topics of digitalization and decarbonization are crucial for future employment. *uni-kassel.de* reports that politicians urgently need to create better framework conditions in order to promote innovative strength and thus sustainable employment.

A central concern of the EFI is the need to expand the digital infrastructure and data usage. According to the analysts, the patent landscape in Germany shows a mixed picture. While Germany plays a leading role in patent registration for decarbonization technologies, it lags behind in the key technology areas of digitalization. This has far-reaching consequences, especially in the manufacturing sector, where many jobs are affected by both digitalization and decarbonization.

Actively shape structural change

The EFI highlights that over 33 percent of employees work in jobs that can be automated. In addition, around 16 percent of workers hold jobs that are potentially harmful to the environment and are therefore at risk from the upcoming structural change. The Commission therefore calls for active political support for structural change, which should promote both innovative digital and sustainability-oriented solutions.

The need for a uniform CO2 price is also emphasized in order to increase efficiency in climate protection. It is also suggested to improve the mobility of employees in order to make it easier to switch to jobs that are less automatable or polluting. The EFI also sees the promotion of further vocational training as essential in order to support changes from outside the industry.

Upheavals in the world of work

In addition to the findings of the EFI, the *arbeitswelt-portal.de* highlights the comprehensive changes in the world of work that are characterized by digitalization, decarbonization, demographic change and de-globalization. A study by the German Economic Institute shows that despite these challenges, there are also opportunities. Two thirds of the industrial entrepreneurs surveyed consider digitalization to be important or very important in the next five years.

Between 2012 and today, the number of IT experts in Germany has increased by 92 percent. Given the dominant digital platforms from China and the USA, the B2B sector sees enormous potential. However, at the same time, companies are faced with the problem of a shortage of skilled workers and the challenges in evaluating data-driven business models.

The need for investment

The challenges in the German economy are also exacerbated by global geopolitical uncertainties and the energy price crisis. *iwkoeln.de* emphasizes that companies must transform to meet the four major trends – digitalization, decarbonization, demographics and de-globalization. The surveys show that shortages of skilled workers and a lack of digitalization are perceived as the main problems.

Companies are urgently demanding support from the government, particularly in the form of massive investments in infrastructure, digitalization and the training of skilled workers. The urgency of a structured and comprehensive economic policy approach is obvious.

In summary, it can be said that the German economy is facing enormous challenges, the successful management of which requires close cooperation between politics and industry. Only through targeted measures can the course be set for a sustainable working world.