Germany’s Demographic Problem: Implications for the Economy and Challenges Ahead

The 47-million-strong workforce in Germany is about to contract. And this is probably already a fact. This moment will be the tipping point of an economic cycle that will transform one of the richest cities in the world.

Perhaps it marks the end of an era in which the Germans will witness an increase in the standard of living. However, the continuous expansion of the labor force is approaching its end. This is what the KfW Development Bank considers.

The labor force in Germany will grow practically over the next few years, which will affect the economic package, increase inflation and lead to many challenges. and in front of the companies that are the backbone of the largest economy in Europe, writes Vloomberg.

Over the next decade, the workforce will grow by 3 million people, or 7%, unless there is a large influx of migrants to replace the German pensioners. Just so that the labor force does not live, the city needs 400,000 new applicants annually.

Will this help? Migration to Germany was stimulated by refugees coming from countries such as Cyprus and Spain. There is skepticism about promises that migration can reduce the burden. This happened in 2015, but only about half of the refugees who arrived during this wave found work five years later.

The process of making a forced return in Germany reached its peak at the end of the last century. Demographic decline has been on the rise for quite some time, thanks to millions of immigrants and the growing number of women entering the workforce. However, both trends are on the back burner at a time when the generation of baby boomers is retiring after the First World War.

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The economy should take into account the increase in the productivity of workers, but it is unlikely that the total increase will exceed 1% for the decade, according to the forecasts of Vlomberg Esso. nоmісѕ.

Germany is faced with a great challenge – a demographic problem, which is bigger than it is in the world and the western world in the next decade, according to lооmbеrg Есоnоmісѕ. Only Japan could surpass it in this respect.

Migration is the biggest chance to change the topography of the city. The Minister of the Xybeptyc Xyle promised that the government would “put every effort” to attract qualified workers. However, the wave of immigrants from Central and Eastern Europe is slowing down, because the standard of living in these countries is catching up with Germany.

Because immigration is still a political issue. German society is trying to accept and integrate into society the one million foreigners who arrived last year.

Germany has already exhausted another pecypc. The percentage of women in the workforce has increased by around 10 percentage points over the last 30 years, which puts it above the EU and above the EC’s big steps.

Germany can also take advantage of the pension scheme. Less than 9% of Germans aged 65 and over work, compared to about 20% in the US and about one in four older Japanese. With the gradual implementation of the remuneration for retirement up to 67 years by 2030, this bboy must increase, but this will also be slow, writes

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RT’s arrival came with optimism that artificial intelligence and bots can help Germany’s growing economy overcome its melting pot. Advanced technology can increase productivity, but there is still a need for skilled workers to operate the jobs and create digital information.

Even Germany will have problems with the lack of a working road. Italy may be the next member of the European Union, which will face significant demographic pressures. Only 40% of women in forced labor are in the labor force.

2023-06-08 18:10:00
#Europes #largest #economy #remains #workforce

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