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Germany’s Workforce Struggles to Offset Baby Boomer Retirements Despite Foreign Labor Gains

New IAB data shows foreign workers have filled key gaps, but immigration remains insufficient to fully address labor shortages, especially in eastern regions.

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Overview

  • Between 2015 and 2024, Germany added 600,000 skilled labor positions, with foreign workers driving this growth as domestic employment declined.
  • Over one million new workers in helper roles, requiring no formal training, were almost entirely foreign employees during the same period.
  • West Germany has a younger-to-older worker ratio of 95:100, while the new federal states lag significantly at 68:100, highlighting regional disparities.
  • Experts warn that current labor immigration levels are too low to sustainably close workforce gaps in the long term.
  • Eastern regions outside major cities face heightened risks of labor shortages, emphasizing the need for targeted migration policy reforms.