According to the employer-aligned Institute of the German Economy (IW), Germany’s labour shortfall could be substantially larger than previously thought as its population ages. The Rheinische Post daily stated on Saturday, citing an IW study it read, that Germany’s labor market could face a 4.3 million job shortage by 2036.
Two years ago, the institute projected that the margin between new entrants and those departing the labor market was around three million workers. The revised prediction is based on new demographic data for Germany’s population trends.
According to the most recent forecasts, Germany’s population would fall to approximately 81.1 million by 2045, a 2.9 percent decrease from its current level. The institute’s 2024 estimates predicted moderate population increase until 2040.
The report linked the shift to a decrease in immigration and Germany’s declining appeal as a destination due to chronic economic downturn and labor market issues.By 2036, only 9.8 million people will have reached working age. According to population predictions, this will result in a 4.3 million-person shortfall,” the institute stated. According to the report, the prospective labor force is predicted to decline by 6.9 percent, from 55 million in 2025 to 51.2 million in 2036.
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