Value Creation and Skilled Workers for the Hydrogen Economy 

Two studies on the industrial and workforce potential of Eastern Germany

The development of a hydrogen economy is not only an important part of the energy transition. It also creates opportunities for industrial value creation, employment, and technological expertise. 

This is particularly relevant for Eastern Germany. The manufacturing of electrolyzers to produce hydrogen as well as their components draws on a broad industrial base. This includes machinery and equipment, metal products, electrical and electronic components, chemicals, and ceramics. The hydrogen sector can therefore build on existing industrial structures, capabilities, and supplier networks in the region.

However, taking advantage of these opportunities requires more than a growing hydrogen market. Companies need to participate in emerging value chains, enhance production capacities, and develop their know-how. Moreover, sufficient skilled workers must be available.

Two WifOR studies examine these dimensions from complementary perspectives. The first publication assesses the potential for value creation and employment along electrolyzer value chains. The second one focuses on current vocational education trends and the skilled workforce needed to turn this potential into economic activity.

Case study one: Value creation and employment along hydrogen value chains

WifOR’s study “Value Added and Labor Market Potential of the Hydrogen Economy in Eastern Germany” examines the economic prospects associated with the production of electrolyzers and their components until 2045. The publication was authored together with the Fraunhofer Institute for Solar Energy Systems – ISE on behalf of the Initiative for Hydrogen in Eastern Germany (IWO).

Value Added and Labor Market Potential of the Hydrogen Economy Download (in German)

Combining a technology- and component-level analysis by Fraunhofer ISE with WifOR’s economic modeling, the study shows how the manufacturing of different electrolyzer technologies translates into demand across industrial value chains.

Key insights:

• Hydrogen can create opportunities across a broad industrial base. Electrolyzer production generates demand across machinery, metalworking, electrical equipment, electronics, chemicals, and other branches. 
• Electrolyzer production can generate substantial value added and employment. As production expands, effects extend to suppliers throughout the value chain. Under the baseline ramp-up scenario, these effects can reach a scale comparable to established industries in Eastern Germany such as paper production – with €1.4 billion in value added.
• Hydrogen offers opportunities for industrial transformation. Building capabilities early could position Eastern Germany not only as a key producer of electrolyzers, but also as a supplier of the components and intermediate products required to manufacture them. 

Case study two: Securing the skilled workforce for the hydrogen economy

Industrial potential can only translate into value creation and employment if the necessary workforce is available.

WifOR’s study “The Ramp-up of the Hydrogen Economy in Eastern Germany Needs Skilled Labor,” commissioned by the IGBCE Foundation for Work and Environment, examines this challenge.

The Ramp-up of the Hydrogen Economy in Eastern Germany Needs Skilled Labor Download (in German)

The analysis shows that many of the occupations required for building, operating, and maintaining the hydrogen economy are already affected by workforce shortages. At the same time, demographic change is reducing the available labor supply in many parts of Eastern Germany. Additionally, the number of people in vocational training in these occupations has not risen in accordance with future needs.

Workforce availability therefore needs to be considered as part of hydrogen growth from the outset. This includes not only recruiting additional workers but also strengthening vocational training and making better use of skills that already exist in related industries.

The study highlights three priorities:

• Strengthening vocational training and apprenticeships to maintain the long-term supply of qualified workers in technical and industrial occupations.
• Expanding targeted upskilling and reskilling, particularly to enable professionals from adjacent or transforming industries to move into emerging hydrogen value chains.
• Developing regional workforce strategies and networks that connect companies, training providers, policymakers, and employee representatives while strengthening attractive career paths and working conditions.