Without changes to participation rates, retirement dates, or immigration, Germany’s workforce is set to shrink by 15m-16m by 2060
Save time by listening to our audio articles as you multitaskBut this was not just a slip of political judgment. Whether Mr Merz likes it or not, Germany needs immigrants. It needs them urgently. Even as Russia’s energy squeeze pushes Europe’s largest economy towards recession, an acute labour shortage looms. A pair of surveys in the second quarter of this year illustrate the trend. The Institute for Employment Research, a government agency, estimated job vacancies in Germany at a record 1.
The current left-of-centre coalition recognises the challenge. It has floated the idea of creating a Canadian-style points system to assess immigrants, easing rules on professional qualifications, and letting skilled immigrants hunt for jobs in Germany rather than insist they seal job contracts first. But none of these changes has yet been made.
Can imported labour fill the gap? Marcus Winter is sure it can. Of the 750 staff in the local outsourcing and services firm he runs in the prosperous southern state of Baden-Württemberg, three-quarters are already foreign-born. This includes not just unskilled labour but top managers, a trend increasingly common across the country.
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