Especially few qualified workers are coming to Germany from third world countries.
Every year, the labor market in Germany loses half a million workers. To prevent the pension system from being under too much strain, more immigrants are needed. However, in reality, their numbers are decreasing, writes ausnews.de.
By 2036, the last representatives of the so-called "baby boomer" generation will retire, and then there will be approximately 4.3 million fewer working people in the labor market. The baby boomer generation consists of about 20 million people born between 1954 and 1969. Approximately five million of them have already reached retirement age, while the rest will reach it by 2036. As explained by IW in Cologne, the labor market loses about 1.3 million people each year. At the same time, only about 800,000 new workers enter the market annually. As a result, there is a shortage of about half a million workers each year.
After that, there will be only about 51 million people left — this is reported by the Institute of German Economy (IW) in Cologne. Meanwhile, politicians seem to ignore the alarming signals and do not do enough to change the situation.
Two years ago, researchers still believed that the labor market would lack 3 million people. But the population is declining faster than expected, so the old forecast unfortunately had to be downgraded. In 2024, the Institute of Economics predicted that by 2040, the population of Germany would grow to 85 million people. In reality, it will be three million less — because many more people are dying than being born.
In 2025, the population decreased for the first time in many years — by 100,000 people. One reason is that significantly fewer people are coming to the country. Thus, the influx of labor into Germany fell by about 12 percent in 2024 compared to the previous year — this is reported by on7.de, citing OECD data.
Especially few qualified workers are coming to Germany from third world countries. Fewer visas are being issued, and the share of those who drop out of training is increasing — this is stated in the migration report for 2025 by the Federal Office for Migration and Refugees (BAMF). And how migration affects pensions, unemployment benefits, and the health insurance system in Germany was discussed by the publication Merkur.
Main obstacles for foreign workers in Germany
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Long visa application and qualification recognition procedures.
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Difficulties in validating foreign diplomas — especially in healthcare and education, where requirements are particularly strict.
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High cost of living.
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High taxes compared to other countries: according to research, only in one country are income taxes even higher.
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Too much bureaucracy in everyday life.
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Lack of housing, and families receive almost no assistance.
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Even before starting work, a person risks their money.
"In just a few years, the economy will lack the workforce to ensure prosperity and maintain the welfare state in its current form," warns IW expert Holger Schäfer. This process could accelerate even further: if employers cannot find employees for vacant positions, production will decrease. Due to low utilization and lack of profits, companies may close certain divisions or even the entire enterprise.
Ultimately, this could hit the income of young people, as the Merz government is not taking real measures to increase pensions. Such measures include not only increasing the influx of immigrants but also expanding the circle of those required to pay social contributions — by including people who have not worked before.
