Germany Faces Shortage of 4.3 Million Workers by 2036

Germany could face a shortage of around 4.3 million workers by 2036, according to a new forecast by the German Economic Institute (IW).

The institute says the labor market situation will worsen mainly due to an ageing population and a decline in the number of people of working age. Many companies are already struggling with a shortage of skilled workers, and experts say the problem will become more pronounced in the coming years.

Two years ago, IW estimated the gap between the number of people leaving the labor market and those entering it at almost three million. The new forecast, based on updated population data, envisages a significantly larger shortfall.

The institute predicts that Germany will have a population of around 81.1 million in 2045, some 2.9% lower than today. The main reasons include lower immigration and declining interest in the country, which analysts link to the continued weakness of the economy and ongoing labor market difficulties.

According to the report, around 9.8 million people will reach working age by 2036, while the potential working-age population is expected to fall from 55 million today to 51.2 million in 2036 and to around 50.4 million by 2045.

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