Germany's Demographic Challenge and the Central Role of Migration

Abstract

"Germany’s demographic and labour market developments over the past decade reveal a structural transformation with long-term implications. Declining fertility, population ageing, and a shrinking domestic workforce have increased the importance of migration as one key component of labour supply, economic performance, and system sustainability. Using recent administrative statistics and new panel survey data, this commentary summarises the empirical evidence on Germany’s demographic pressures, the contribution of migrants to labour market dynamics, and emerging patterns in onward and return mobility. Projections indicate a substantial contraction of Germany’s labour force potential in the coming decades. Under a zero-migration scenario, the working-age population will decrease by approximately 16 million individuals by 2060, even when assuming rising employment rates among women and older workers." (Text excerpt, IAB-Doku, © 2026 Elsevier) ((en))

Cite article

Kosyakova, Y. (2025): Germany's Demographic Challenge and the Central Role of Migration. Evidence from Labour Market and Mobility Data. Commentary. Milano, o. p..