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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

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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

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

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