Germany has made a forecast for the labour market until 2027.
Here are some important points from the study by the Institute for German Economics (IW).
1. The German population over the age of 60 is actively continuing to work. It is therefore important to make policy decisions that will continue to incentivise Germans to work longer. If this trend continues, the average annual employment growth between 2022 and 2027 will be 537,000, or 1.6 per cent per year.
2. The impact of demographic change can be offset by immigration.
3. The immigration trend is greatly enhanced by record immigration from Ukraine in 2022. However, the foreign participation rate in 2022 is lower as many refugees enter the labour market late. However, Germans already have a positive experience with refugee integration in 2015, which they plan to repeat.
4. To increase skilled immigration, they plan to utilise the possibilities of the amended Skilled Immigration Act (Fachkräfteeinwanderungsgesetz – FEG).
How does Germany plan to incentivise immigration of workers?
Professions that will feel the greatest shortage of personnel
Source: IW www.iwkoeln.de
