# German labor market demographic shifts > Live situation record from CLSTR: https://clstr.news/situations/german-labor-market-demographic-shifts > Updated: 2026-08-14T11:14:00.000Z. Sources: 4. Developments: 2. Germany is experiencing complex shifts in its labor market characterized by both precarious employment for migrants and a potential loss of skilled domestic workers. Data indicates that 32.2% of foreign full-time employees covered by social security work for low wages, compared to 13.6% of German workers. Additionally, surveys suggest a risk of high-skilled brain drain, as many German employees have considered or explored working abroad. In Eastern Germany, these demographic shifts have manifested as significant labor shortages. Between 2023 and 2025, the eastern states lost approximately 141,000 German citizens, while the number of employees without German passports increased by 90,000. Despite this increase in foreign labor, overall employment in the region fell by 0.8 percent. Experts suggest that retirements and return migration to Eastern European countries may exacerbate these shortages, prompting calls to strengthen skilled immigration from third countries to protect economic stability and essential services. ## Timeline ### 2026-08-14: Eastern Germany faces significant labor shortages Eastern Germany faces a growing labor shortage as German citizens depart, prompting experts to urge increased immigration from third countries to prevent economic and service disruptions. 4 sources. https://clstr.news/cluster/eastern-germany-faces-significant-labor-shortages ### 2026-07-17: Germany confronts low‑wage foreign labor share and high‑skill brain‑drain risk Germany sees 32% of foreign workers in low‑wage jobs and a growing willingness among high‑earners to seek work abroad, raising concerns of a skilled‑worker brain drain. 4 sources. https://clstr.news/cluster/germany-confronts-lowwage-foreign-labor-share-and-highskill-braindrain-risk --- Cite as: German labor market demographic shifts. CLSTR, https://clstr.news/situations/german-labor-market-demographic-shifts