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Berlin The labor supply in Germany will drop drastically by 2060, according to a new study. The decisive factor for this is the age-related decline in the domestic population of working age, said the Institute for Labor Market and Occupational Research (IAB) on Friday.

By 2060, the potential labor force will shrink by 11.7 percent from 45.7 million to 40.4 million. This already takes into account the increasing employment rates of women and older people as well as net immigration of workers. Immigration from non-EU countries is gaining in importance.

By 2035 alone, the labor supply will fall by more than 1.8 million to almost 43.9 million people. “The results show that companies will have significantly fewer workers available in the coming decades,” said Enzo Weber from the IAB. “If we want to avoid shrinkage, we have to step up our countermeasures at least two more steps.”

“Third countries are becoming increasingly important to the EU when it comes to labor migration,” said Weber. “The hurdles must therefore be further removed.” But more must be done to ensure that immigrants on the labour market Gain a foothold and find a long-term perspective. A new law is currently being discussed in the Bundestag that is intended to facilitate the immigration of workers from third countries. Migration experts don’t go far enough.

Read more...

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A higher birth rate will also be important for the long-term stabilization of the labor supply beyond 2035. “A society in which work and family can be easily reconciled is crucial for this,” said Weber. Factors such as comprehensive childcare options, a partnership-based division of tasks, flexible individual work models and family policy support would help.

Source: handelsblatt.com

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