Bertelsmann Foundation: Germany's Economy Needs Hundreds of Thousands of New Immigrants Annually

A new analytical report indicates that Germany's economy requires hundreds of thousands of migrant workers each year to counter the negative impacts of its aging society. This report, published on November 27 by the independent Bertelsmann Foundation, emphasizes that without significant immigration, Germany's economy, the largest in Europe, could shrink by up to 10% by 2040. The foundation estimates that assuming more women and retirees enter the labor market, Germany will need 288,000 new migrant workers annually to prevent economic contraction. If these assumptions do not materialize, Germany will need 368,000 new migrants each year to avoid a significant decline in its workforce. Consequently, if more international workers do not enter Germany's labor market, the number of workers could decrease from the current 46.4 million to 41.9 million. Susanne Schultz, a migration expert at the Bertelsmann Foundation, pointed to the retirement of the so-called 'baby boomer' generation (born between 1946 and 1964) as a key factor in the reduction of Germany's workforce, stressing that domestic workforce development alone will not be sufficient to meet future labor demands by 2040. This report comes as Germany approaches early elections scheduled for early next year, with issues such as economic recession and immigration becoming central to political discussions. Both far-left and far-right parties in Germany, which seek severe restrictions on foreigners and a reduction in the acceptance of new migrants, have gained traction in polls. In 2023, Germany reformed its immigration laws, making it easier for skilled foreign workers to work in the country. These reforms include the introduction of a 'blue card' for qualified professionals and a reduction in bureaucracy for recognizing foreign qualifications. However, the German Chancellor has emphasized that many barriers remain that must be removed to attract migrants. The Bertelsmann Foundation's report underscores that the entry of foreign workers will not be feasible without a greater culture of hospitality from local authorities and businesses.