Global labor market insights: April 2023 edition

This month’s edition of global labor market insights delves into the race for skilled labor in managing, installing, and maintaining heat pumps. With a significant shortage of heating installers estimated at around 60,000 in Germany alone, the demand for skilled workers in this field has reached a critical level. Additionally, the recent acquisition of Viessmann by US competitor Carrier Global has brought the heat pump industry into the spotlight for both media and consumers. Let’s explore the labor market trends surrounding heat pump professionals this month, along with some general global labor market insights.

According to HRForecast’s data for April 2023, there were a total of 15.2 million job postings globally. However, the number of job postings has been decreasing consecutively for the past three months, with a decline of over 30% compared to January 2023. Whether this decline is, a temporary setback or the beginning of a long-term trend remains to be seen.

This reduction in job postings is primarily driven by a cooling-off of the US labor market, which experienced a 33% decrease in monthly job postings from 6.7 million jobs in February 2023 to 4.5 million in April 2023.

France also witnessed a decline in demand, with job postings down 15% compared to the previous month. This decrease could be attributed to the country-wide protests in April, potentially impacting the labor market negatively. On the other hand, Brazil experienced a 20% increase in demand, positioning it second on the list. However, the sustainability of this development remains to be seen.

Despite the overall decline in job postings globally, the US still maintains a higher share of global job postings in April 2023 compared to April 2022, with a 7% increase. In addition, other global regions have shown more stability in comparison, with Europe gradually recovering from the steep decline observed last month.

The Zentralverband Sanitär Heizung Klima (Central Association of Sanitation, Heating, and Air Conditioning) has reported a shortage of skilled heating installers in both the installation of new heating systems and the modernization of existing ones. And the demand for skilled labor in heat pumps has steadily increased over the past two years. In addition, the continuous high demand for professionals with expertise in heat pumps has been a driving factor behind mergers and acquisitions within the industry, exemplified by the recent Viessmann acquisition by Carrier.

Most job roles related to heat pumps are focused on installation, maintenance, and operation. It indicates that the skills shortage primarily concerns technical expertise rather than managerial or commercial skills.

We analyzed job postings from ten selected heat pump manufacturers and sellers to gain further insights into the demand for heat pump-related jobs. These companies are at the forefront of the industry and play a significant role in shaping the labor market dynamics in this field.