In Germany, almost all of the 25- to 59-year-olds are employed. The Federal Statistical Office therefore sees little room for improvement.

According to the Federal Statistical Office, Germany has largely exhausted its labour force potential. 87 per cent of 25- to 59-year-olds were employed last year, as the authority announced. This means that labour market participation in this age group is “already at a very high level”.

According to the report, the proportion of men in employment was 92 per cent, and 83 per cent of women. Among 20- to 24-year-olds, almost three out of four were active in the labour market, and among 60- to 64-year-olds, the figure was still two-thirds.

“Although the labour supply could still be expanded by a stronger labour force participation of the younger and older age groups as well as of women, the demographic effect could not be completely compensated,” the statisticians announced. This is also feared by the leading economic research institutes in their spring forecast for the federal government.

According to this forecast, the number of people in employment is likely to rise from about 45.6 million last year to about 46.0 million next year. Many retire, more work part-time

According to the Kiel Institute for the World Economy (IfW), however, more people are expected to retire from the labour force than will join it, because the baby boomers are retiring.

On average, the German labour market would then lose almost 200,000 workers per year. Although about 350,000 people are expected to immigrate from abroad every year, the working-age population will shrink. Bringing more people into the labour market – for example through better childcare or more flexible working time models – could dampen the decline in the labour force, but not stop it.

According to the Federal Statistical Office, a look at the scope of employment shows that more people are working part-time. In 2022, this affected 30 per cent of employees. While almost every second woman worked part-time, the rate among men was only 13 percent. Part-time employment has thus increased slightly since 2010. At that time, 46 per cent of women and nine per cent of men had worked part-time.

“Activating part-time workers to work more is a way to tap additional potential in the labour market,” the office said. “At the same time, part-time employment can make it possible to take up employment in the first place, for example because in this way the reconciliation of work and family life can be ensured better or at all.”
Source: Zeit Online 04/27/2023

Age distribution of german society (*1000 People / Age)

What happens to society and economy of a country when there are too less of young people and too much old ones?

When a society has a large elderly population and a small younger population, there are several potential consequences for both the society and the economy. Here are a few examples:

1. Economic slowdown: With fewer young people in the workforce, there may be a shortage of labor and a decline in economic productivity. This can lead to a slowdown in economic growth, as there are fewer people to create and innovate new businesses, technologies, and industries.
2. Strain on healthcare and pension systems: As the population ages, there will be an increased demand for healthcare services and pension benefits, which can put a strain on the government’s finances. Governments may struggle to provide adequate healthcare and retirement benefits to an aging population, leading to rising costs and potentially reduced quality of care.
3. Increased immigration: In some cases, countries with aging populations may choose to increase immigration in order to supplement the labor force and support the economy. This can bring benefits such as increased cultural diversity and innovation, but it can also create social and political tensions.
4. Changes in family structure: In societies with more elderly people, there may be fewer younger people who are able to care for aging family members. This can lead to changes in family structure, as elderly people may need to rely more on government services or professional care providers.

Overall, an aging population can have significant economic and social implications, and it is important for governments to carefully consider policies that address the needs of both older and younger generations.

Which economical changes germany are waiting for without migration and the same birth rate. How long it will take.

Based on current demographic trends and projections, we can make some estimates about when these changes may start to become more pronounced:

1. Shrinking labor force: The decline in the working-age population is already underway in Germany and is expected to continue over the coming decades. According to the Federal Statistical Office of Germany, the working-age population (defined as people aged 20-64) is expected to decline by over 10% between 2018 and 2040.
2. Rising demand for healthcare and pension benefits: As the population ages, the demand for healthcare services and pension benefits is expected to rise gradually over the coming decades. According to the Organisation for Economic Co-operation and Development (OECD), the ratio of people aged 65 and over to working-age people in Germany is projected to increase from 36% in 2015 to 54% in 2050.
3. Reduced demand for consumer goods and services: The decline in Germany’s population is expected to lead to reduced demand for consumer goods and services over the coming decades. However, the pace and severity of this decline will depend on several factors, including changes in consumer behavior and technological advancements.
4. Potential changes to pension and healthcare policies: The German government has already made some changes to pension and healthcare policies in recent years, such as gradually increasing the retirement age and introducing long-term care insurance. However, further changes may be needed in the coming years to ensure the sustainability of these programs.
5. Potential for increased immigration: Germany has already experienced significant immigration in recent years, particularly during the refugee crisis of 2015-2016. However, the potential for increased immigration in the coming years will depend on several factors, including changes in immigration policies and global economic conditions.

Overall, the economic changes associated with an aging population are likely to become more pronounced over the coming decades, with some changes already underway. However, the exact timeline and severity of these changes will depend on several factors and may vary over time.

Which countries have the oldest population of the world?

Based on data from the United Nations, here are the 10 countries with the oldest populations in the world as of 2021, ranked by median age:

1. Japan – 48 years
2. Italy – 46 years
3. Greece – 46 years
4. Portugal – 46 years
5. Spain – 45 years
6. South Korea – 45 years
7. Germany – 46 years
8. Bulgaria – 44 years
9. Latvia – 44 years
10. Croatia – 44 years

It’s worth noting that a country’s median age can change over time due to various factors such as changes in birth rates, immigration, and healthcare improvements.

List of the major social insurance programs in Germany and how the aging population rise the costs over the next 20 years:

1. Statutory pension insurance: the contribution rate is expected to increase from the current rate of 18.6% to around 26% by 2045.
2. Statutory health insurance: healthcare spending is expected to increase from around 11% of GDP in 2019 to around 16% by 2040.
3. Long-term care insurance: higher numbers of people in need of long-term care could lead to higher contribution rates.
4. Unemployment insurance: the number of unemployed people aged 50 and over is expected to increase from around 1.3 million in 2019 to around 1.9 million by 2035.
5. Accident insurance: older workers (aged 55 and over) are more likely to suffer from severe accidents and are more likely to require a longer recovery period compared to younger workers, potentially leading to higher contribution rates.

Have a look which influence the higher monthly rates of social insurance are on the wages in 20 years if nothing changes:

Statutory Pension Insurance:

	Now	In 20 Years (Projected)
Contribution Rate	18.6% of gross wage	around 26% of gross wage
Monthly Contribution	€775.36	€1,548.72

Statutory Health Insurance:

	Now	In 20 Years (Projected)
Contribution Rate	14.6% of gross wage	estimated to increase
Monthly Contribution	€607.36	higher contribution rate

Long-Term Care Insurance:

	Now	In 20 Years (Projected)
Contribution Rate	3.05% of gross wage	potentially higher
Monthly Contribution	€126.83	due to increasing demand

Unemployment Insurance:

	Now	In 20 Years (Projected)
Contribution Rate	2.4% of gross wage	uncertain, but expected to increase
Monthly Contribution	€99.84	due to aging workforce

Note: It’s important to keep in mind that these projections are based on various assumptions and estimates, and the actual changes could be different depending on various factors such as changes in policy, economic conditions, and demographic trends.

So what to do now as a ecucated foreigner that is interested to get a job in Germany?