Germany Faces Labour Shortage: 288,000 Foreign Workers Needed Annually

Germany Seeks 288,000 Foreign Workers Annually to Fill Labour Shortage

“I want equality but I won't beg for it.”

Germany is struggling to retain skilled immigrants due to discrimination and rejection. A Syrian refugee's story highlights the need for change.

A recent study has revealed that Germany's workforce is facing a significant decline in the coming decades. To mitigate this, the country requires an annual influx of approximately 288,000 skilled foreign workers. Without this, the workforce is projected to shrink from 46.4 million currently to 41.9 million by 2040, and further to 35.1 million by 2060.

According to Susanne Schultz, a migration expert at Bertelsmann, the impending departure of the baby boomer generation from the labour market poses substantial challenges for Germany. Schultz emphasized the need to develop and increase Germany's domestic potential, while also acknowledging that immigration is essential to address the demographic shift. “This demographic shift demands immigration,” Schultz stressed, highlighting the crucial role that foreign workers will play in shaping Germany's future workforce.

A more pessimistic projection model has estimated that Germany may require as many as 368,000 immigrant workers annually until 2040, and 270,000 per year thereafter until 2060. This highlights the significant labor gap that Germany needs to address in the coming decades.

The question remains whether Germany's labor migration reforms are sufficient to attract the required number of foreign workers. According to Susanne Schultz, migration expert at Bertelsmann, the current pace of labor migration falls short of the needed levels. Schultz emphasized that barriers must be removed and conditions improved for immigrants. “Barriers needed to be removed and conditions improved for immigrants,” Schultz said.

Germany's labor migration laws underwent reform in 2023 to facilitate the entry of qualified foreign workers. Interior Minister Nancy Faeser touted the reforms as “the most modern immigration law in the world.” However, the Bertelsmann Foundation's recent study suggests that more needs to be done. The foundation emphasized that foreign workers would not come to Germany “without a more welcoming culture throughout local authorities and businesses,” and without “the perspective of staying long-term.”

A telling example highlighted by Germany's dpa news agency illustrates the challenges faced by foreign workers in Germany. As one individual poignantly stated, “I want equality but I won't beg for it.” This sentiment underscores the need for Germany to create a more inclusive and welcoming environment for foreign workers.

A Syrian refugee, who fled his native country's civil war in 2016 at the age of 21, has shared his disillusioning experience in Germany. Despite graduating with bachelor's and master's degrees from universities in western Germany and becoming a trained IT specialist, he has decided to leave Germany for Switzerland. The refugee's decision stems from the discrimination and rejection he faced in Germany.

“I gave my very best here in order to be considered an equal, but I felt discrimination and rejection,” he recounted, sharing his experiences of denigration in social circles and part-time work. Despite waiting for an acceptable job offer, it never came. The refugee's words underscore the sense of disillusionment and frustration he felt in Germany. “I want to be treated as an equal,” he said. “But I'm not going to beg for it.”

Bertelsmann's migration expert, Susanne Schultz, views the refugee's case as a worrying trend. “Unfortunately, this case is not an anomaly,” Schultz said. Germany's inability to retain skilled and educated immigrants like the Syrian refugee is a concern that Schultz believes must be addressed. “Germany can't afford that and must become more attractive,” Schultz emphasized, highlighting the need for Germany to create a more welcoming environment for foreign workers.

The shrinking workforce in Germany is expected to have a varying impact across different regions. According to the analysis, the effects of a shrinking workforce and the need for greater immigration to fill the gaps will be felt differently across the country.

While the average 10% contraction in the workforce is likely to apply to North Rhine-Westphalia, Germany's most populous state, demographically weaker states such as Thuringia and Saxony-Anhalt in the former East Germany, and the small state of Saarland on the French border, will be even harder hit. Even traditionally well-off southern regions like Bavaria and Baden-Württemberg won't be completely unscathed.

Major cities like Hamburg and Berlin, which already benefit from high levels of immigration, would be less negatively impacted, according to the study. These cities are likely to continue attracting immigrants, which would help mitigate the effects of a shrinking workforce.