Foreign Workers Drive Germany’s Employment Growth Amid Demographic Decline

Since 2024, the rise in German employment has been powered almost entirely by foreign‑born workers, while the contribution of native German employees has weakened as the population ages. Between 2014 and 2024, the number of working‑age Germans fell by about 3.9 million, whereas the working‑age population with foreign citizenship grew by roughly 3.4 million. As a result, foreign employees accounted for 43 % of total employment growth, with a third coming from refugees, 26 % from EU‑EEA and Swiss nationals, and the remainder from other third‑country nationals. German workers supplied about one‑third of the growth.

The Federal Employment Agency attributes the trend to both increased labour‑force participation and the need for migration to fill skill gaps. Vanessa Ahuja, board member for Services and International Affairs, said, “We need migration to keep Germany’s labour market functioning.” Daniel Terzenbach, regional board member, added that refugee integration has “significantly boosted employment growth.” The shift underscores the growing importance of immigration for Germany’s economic stability and its ability to address shortages in critical occupations.