AfD political rise threatens Germany’s ability to attract foreign labor

The rise of the far-right Alternative for Germany (AfD) party poses a potential challenge to the country’s ability to attract the foreign labor necessary to offset its aging population. Following a victory in Saxony-Anhalt, the AfD has entered a regional government for the first time, granting the party direct influence over local policies regarding integration and labor.

In Saxony-Anhalt, the Leibniz Institute for Economic Research Halle (IWH) reports a current labor deficit of nearly 14,000 workers, a figure projected to reach 32,000 by 2031. The AfD’s platform focuses on encouraging ethnic Germans to return to the region through economic incentives, such as housing and childcare subsidies, rather than through immigration. However, economists warn that anti-immigration policies could exacerbate the shortage, potentially increasing the deficit to 46,000 workers by the end of the new legislative term.

The tension between the economic necessity of skilled immigrants—particularly in technical and healthcare sectors—and the AfD’s restrictive political stance creates significant uncertainty for Germany’s long-term economic growth and workforce stability.