Germany’s demographic crisis is evident as its population ages rapidly. The country’s birth rate has been declining for decades, whilst the number of deaths has been increasing. This demographic shift is resulting in a double whammy; a shrinking labour force and an ageing population. Both have serious implications for Germany’s economic and societal outlook.
Germany’s aging population is a ticking time bomb for its economy
With fewer young people entering the workforce, there will be fewer workers to support an ageing population that requires more healthcare, social services, and contributions to pensions. This demographic shift will also affect Germany’s GDP, as productivity is likely to decline due to the shortage of workers. Christian Duerr, parliamentary leader of the co-governing Free Democrats (FDP) was recently quoted saying “The shortage of skilled workers has become so serious by now that it is dramatically slowing down our economy.”
Baby boomers are retiring in record numbers, which has led to rising demand in fields like technology, engineering and healthcare where there is a shortage of experienced workers. This is particularly true in industry, information technology, medicine, finance, science and education. Migrants bring the necessary diversity of skills and perspectives to German industries, leading to innovation and growth.
Opportunities Within The Crisis
Skilled migrants who come to Germany to work can also benefit from the nation’s social welfare system, including healthcare, education and pensions. This provides a safety net for individuals and their families, which can provide much-needed security and stability as they build a new life in the country. The key factors in successfully landing a job include a relevant university degree, especially from a German University, and a strong command of the German language, amongst others.
Germany’s demographic crisis is a rising issue, but it also offers qualified immigrants an opportunity to fill the talent gap in the labour market and provide Germany with the skilled workforce it needs to support its growing economy.
