Summary

Germany faces a significant labor shortage, requiring 288,000 skilled foreign workers annually until 2040 to offset its shrinking workforce due to aging demographics, per a Bertelsmann Foundation study.

Without substantial immigration, the workforce could decline by 10% by 2040 and drop further by 2060.

Despite 2023 labor migration reforms, discrimination, limited long-term prospects, and unwelcoming attitudes hinder foreign talent recruitment and retention.

Regional impacts will vary, with economically weaker areas hit hardest. Experts stress improving conditions and fostering inclusivity to attract and retain skilled migrants.