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Where the German economy depends on foreigners

Where the German economy depends on foreigners

Where the German economy depends on foreigners
Where the German economy depends on foreigners

Germany's Economy Depends on Foreign Workers

Foreign workers are a significant part of Germany's workforce, making up around 15% of employees covered by social security, according to data from the Federal Employment Agency (BA). This percentage is even higher in certain sectors, and it's on the rise.

Overrepresentation in Specific Sectors

Sectors with particularly high proportions of foreigners include cleaning staff (41%), food production (38%), building construction and civil engineering (33%), and tourism, hotels, and restaurants (32%). Foreign workers are also significantly overrepresented in the transport and logistics sector and in agriculture.

Positive Attitude Toward Immigration

Germany's employers view immigration positively. The Confederation of German Employers' Associations (BDA) acknowledges the need to cushion the impact of demographic change and maintain prosperity. Without skilled workers and workers from abroad, Germany may not be able to maintain its current level of success.

Risk to Prosperity Without Immigration

According to Martin Lange, labor market expert at the Centre for European Economic Research (ZEW), Germany's prosperity could be at risk without immigration. In a globalized economy, being hostile to immigration might not make Germany an attractive destination for skilled workers.

Shifting Landscape of Employment

In some occupational groups, foreigners are compensating for the decline in the number of German workers. For instance, from 2018 to 2023, the number of Germans in the manufacturing industry has fallen by 285,000, while the number of foreigners has risen by 202,000. Similar trends can be seen in the hospitality industry and the finance and insurance sector.

However, in other professions, both Germans and foreigners are on the rise, such as healthcare, information and communication, and education.

Origin of the Workforce

People from other EU countries are mainly represented in the manufacturing industry, trade, transport, and construction. Asylum seekers are primarily found in trade and transportation, and skilled workers from the Western Balkans are now employed in the construction industry.

Level of Qualification

Both highly and low-skilled foreigners are coming to Germany. Immigrants might have to start as unskilled workers and work their way up to specialist or expert roles. Recognizing professional qualifications can be particularly challenging for doctors and lawyers.

Foreign labor plays a significant role in various sectors in Germany, including construction, IT and engineering, healthcare, and manufacturing. The source of these workers is diverse, with EU countries and asylum seekers predominantly represented in certain sectors, and skilled workers from the Western Balkans in others. The level of qualification among foreign workers varies, with both low-skilled and highly-skilled individuals immigrating to Germany.

(Enrichment Data Integrated into Base Article)

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