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Germany needs 400,000 foreign workers a year, so it raised the daily wage

The new German coalition government wants to attract 400,000 skilled workers from abroad each year to address the problem of demographic imbalance and labor shortages in key sectors.

“The shortage of skilled labor has become so severe that it is dramatically slowing our economy,” said Christian Duer of the Free Democrats.

To make Germany more attractive to foreign labor, coalition partners agreed on a scoring system for experts outside the EU, but also increased the minimum wage to 12 euros.

The German Institute for Economics estimates that the workforce will shrink by more than 300,000 this year as more older people retire than young people enter the job market.

That gap could increase to more than 650,000 by 2029, and by 2020 the accumulated shortage of able-bodied people could reach 5 million.

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