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Wido Geis-Thöne IW-Analyse No. 151 11. October 2022 The importance of immigration for the German economy

As a result of demographic change, Germany will become increasingly dependent on immigration to secure its pool of skilled labour and stabilise its economic performance.

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The importance of immigration for the German economy
Wido Geis-Thöne IW-Analyse No. 151 11. October 2022

The importance of immigration for the German economy

German Economic Institute (IW) German Economic Institute (IW)

As a result of demographic change, Germany will become increasingly dependent on immigration to secure its pool of skilled labour and stabilise its economic performance.

Immigrants are already making an important contribution in this respect. In 2019, for example, almost every sixth person in skilled employment had not been born on German soil and one in twenty had entered the country since 2007. Taking only university graduates between the ages of 25 and 34, the share of immigrants rises to approximately a quarter and of those who have moved to Germany since 2007 to around a fifth. The figures show that non-natives are also making a growing contribution to innovation and entrepreneurship in this country. Despite this, the overall immigrant population is still disproportionately low-skilled and either employed in menial positions or not active in the labour market at all. Immigration policy must therefore continue to be selective and specifically target potential employees and trainees from non-EU countries who either already possess the specialist qualifications needed in Germany or can rapidly acquire them.

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The importance of immigration for the German economy
Wido Geis-Thöne IW-Analyse No. 151 11. October 2022

The importance of immigration for the German economy

German Economic Institute (IW) German Economic Institute (IW)

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Employment Dynamics in the Low-wage Sector
Holger Schäfer IW-Trends No. 4 4. December 2024

Employment Dynamics in the Low-wage Sector

In 2021 around 13 per cent of the working-age population, or 19 per cent of those in dependent employment, were receiving a low wage, showing that this pay segment is continuing to decline.

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Andrea Hammermann / Jochen Pimpertz / Oliver Stettes Expertise 11. November 2024

Employment shortly before and after retirement

As a result of demographic trends, around a quarter of all employees in the mechanical engineering sector are expected to retire in the next ten years. This corresponds to more than 296,000 people.

IW

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