Skills shortage not so bad after all?

June 2025

The Self-Inflicted Madness in the Job Market: Skills Shortage Meets Age Discrimination

A specter is haunting Germany – the specter of the skilled worker shortage. From every corner of the republic, complaints about the lack of qualified labor are growing louder. But while the economy laments unfilled positions, a huge, untapped potential lies dormant in the job market: experienced, highly qualified professionals over the age of 50. They are, however, often systematically screened out by ultra-conservative HR departments and fearful decision-makers. It's an absurd drama that Germany, facing demographic shifts and economic pressure, can no longer afford.

The numbers speak for themselves. Without significant immigration, Germany's workforce could shrink by 10% by 2040. At the same time, age discrimination is a widespread phenomenon in the German workplace. Studies and surveys repeatedly show that older applicants face significant hurdles in the hiring process. According to the Federal Anti-Discrimination Agency, age is a common reason for experiencing discrimination, particularly when seeking employment.

Yesterday's Thinking in HR Departments: Young, Cheap, and with 20 Years of Experience

Despite the clear need for skilled workers, many HR departments seem stuck in the past. The ideal candidate profile for open vacancies often reads like an attempt to square the circle: employers want a young, dynamic employee who also possesses decades of professional experience, a plethora of qualifications, and is content with a modest salary. It seems that resumes are often evaluated by standards that are 15 to 20 years old.

These outdated expectations lead to the systematic disadvantage of older applicants. Instead of recognizing the immense potential of experience, loyalty, and so-called "crystallized intelligence" – the expert and procedural knowledge acquired over years – older candidates are often prematurely rejected.

The Fear of Being Outperformed: A Manager's Anxiety

Another, often unspoken, reason for rejecting experienced applicants is the fear of the decision-makers themselves. Younger managers, in particular, often worry about being "outperformed" by an older, highly qualified employee. The concern that their authority could be undermined or their competence questioned leads to a defensive and ultimately company-damaging attitude. Instead of bringing an experienced sparring partner onto the team who can share knowledge and contribute to stability, they prefer to bet on supposedly more malleable, younger candidates.

Top Qualifications Meet Prejudice: The Untapped Potential

This mindset completely overlooks the fact that many older applicants not only possess a wealth of experience but are also highly proficient in modern methods and technologies. The assumption that older employees are less adaptable or tech-savvy is a long-refuted prejudice. Many have continuously pursued further education and are familiar with the latest developments in their industry. The problem is, they often don't even get the chance to present their skills in an interview. The label "overqualified" is frequently used as a code word for being "too old."

The Cowardice of Decision-Making: Lacking the Guts for the Future

Although the potential of older workers is often praised in speeches and at conferences, the reality of specific hiring decisions looks different. It seems that in 99% of cases, the courage to choose the "older one" is missing. Driven by obsolete ways of thinking and prejudices fueled by employers of the past, this vast potential is simply left on the table.

This short-sighted and prejudiced personnel policy is now coming back to haunt the economy. The skills shortage is not just a consequence of demographic change but also the result of years of self-inflicted ignorance regarding the value and competence of experienced workers. It is time for a fundamental rethink in Germany's boardrooms and HR departments – away from outdated stereotypes and towards an appreciative and future-oriented HR strategy that embraces all generations. Because one thing is certain: our economy can no longer afford the luxury of ignoring the immense potential of the "silver generation."