Germany needs 260,000 immigrants every year to ease labour shortage

Germany will need at least 260,000 immigrants a year for the next four decades to meet increasing demand for labour, cites a new study. The analysis takes into account a possible higher birth rate and higher recruitment, as well as, the productivity of nationals.

The research, published by the Bertelsmann Foundation last week, said without foreigners, the number of workers will be massively reduced by about 16 million people (almost a third) by 2060 due to an ageing population.

“Even if German women and men worked equally and the retirement age was set at 70, the demand for skilled workers could not be covered by domestic funds,” the report, which is based on calculations by the Institute for Employment Research and the University of Coburg said.

However, figures show that it would still be necessary to encourage migrants’ arrival from Europe and other regions in order not to ruin Germany’s economy, which is the fourth largest in the world.

Germany is in the process of increasing its retirement age to 67 by 2029. According to a report by Yahoo Finance UK, the country’s birthrate has also increased, reaching the European average of 1.59 babies per woman.

The Bertelsmann Foundation’s study said 114,000 people are expected to immigrate to Germany from other EU states, however, migrants from other EU countries would not be enough to meet the labour demand.

Thus, another 146,000 will be required annually from non-EU countries to fill the gap, the study added. Alongside the publication of the study, the executive director of the Bertelsmann Foundation, Jörg Dräger, said only 38,000 moved and stayed in Germany from other EU states in 2017.

He said that it was ideal for Germany to speed up and pass a new immigration law that would make it easier for skilled professionals from non-EU countries to move to Germany and find a job.

“Migration and integration are jobs for society as a whole, and a new law alone is not enough,” Dräger said, highlighting the need for Germany to have “more integration offers and a sustainable welcome culture.”

Broken down, the average need for migrants, according to the study, is as follows:

By 2035 – 98,000 immigrants from non-EU countries every year.

Between 2036 and 2050, almost 170,000 people per year.

Between 2051 and 2060, almost 200,000 people per year.

In August 2018, the German labour force said there were 1.2 million vacancies to be filled in Germany. It encouraged the government to keep paying for language classes for asylum seekers so they could be trained to join the workforce.

Statistics show that out of the millions of refugees who arrived in Germany since 2015, 300,000 of the figure had found jobs as of May 2018. Migrants often play an important role in the labour markets and economies of the countries in which they settle.

Just as they would do at home, migrants buy and spend in the host country. This helps increase sales for companies in the host country and they can subsequently increase their production and ensure higher wages and profits.

Canada acknowledged this and many more this year when it announced that it was opening its borders to one million more immigrants.

“Thanks in great part to the newcomers we have welcomed throughout our history, Canada has developed into the strong and vibrant country we all enjoy. Immigrants and their descendants have made immeasurable contributions to Canada, and our future success depends on continuing to ensure they are welcomed and well-integrated,” a report tabled in parliament by Ahmed Hussen, minister of immigration,  refugees and citizenship said.