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Germany’s economic future depends on non-EU migrants as workforce shrinks

A shrinking population and stricter rules for refugees put Germany’s economy at risk. Can non-EU workers save its job market?

In this picture I can see there are some buildings and there is a tunnel and train is passing from...
In this picture I can see there are some buildings and there is a tunnel and train is passing from the tunnel.

Germany’s economic future depends on non-EU migrants as workforce shrinks

Germany’s workforce is changing rapidly, with migrants from outside the EU now driving employment growth. At the same time, recent adjustments to the job turbo program for refugees have slowed down their integration into the labour market. Experts warn that without more skilled workers from non-EU countries, the shrinking working-age population could threaten economic stability.

Daniel Terzenbach, a board member of the Federal Employment Agency, has stressed the urgent need for more immigration to fill gaps left by demographic shifts and reduced migration from Eastern Europe.

The job turbo program, designed to help refugees find work, has faced setbacks. New rules now require asylum seekers to enter the benefit system before accessing language and vocational training. This change has made it harder to combine essential support services, creating delays and extra bureaucracy.

Meanwhile, Germany’s employment growth increasingly relies on workers from third countries. By 2025, all net gains in employment are expected to come from non-EU migrants. Terzenbach highlights this trend as crucial, arguing that international skilled workers are vital to counterbalance the country’s ageing population and declining birth rates. Adding to the challenge, countries like Poland and the Czech Republic are successfully encouraging their citizens to return home, reducing the flow of workers to Germany. With fewer Eastern Europeans arriving, the pressure to attract talent from further afield has grown. Terzenbach also calls for a shift in workplace language policies. He proposes making English widely accepted as a second professional language, suggesting early English education for children. This, he argues, would better prepare future workers for a more international job market. The issue extends beyond migration. In 2021, 62,000 young Germans left school without qualifications, and one in five graduates took up unskilled work immediately. These figures underscore the need for both better training and more open doors to foreign talent.

Germany’s economic future hinges on its ability to attract and integrate skilled workers from non-EU countries. The slowdown in the job turbo program and the shrinking domestic workforce make immigration a key factor in sustaining growth. Without further reforms, businesses may struggle to fill critical roles in the years ahead.

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