A recent study by the "Bertelsmann" Foundation says that the German labor market is facing major challenges - mainly due to the continuing trend towards an aging population.
In March 2026, the number of employed people subject to social security was 0.2 percent lower than in the same month of the previous year, although the number of foreign workers increased significantly - by 3.4 percent. In absolute numbers: within a year, 75,000 workers were missing from the labor market.
Many sectors in Germany are increasingly relying on immigration: data from "Bertelsmann" show that almost half of those employed in the cleaning sector, for example, are foreign nationals (47.5 percent), in food production their share is almost 44 percent, in tourism and gastronomy - 36 percent, and in the care sector, which already suffers from a huge shortage of personnel, over 20% of employees are foreigners.
In the coming years, this trend will intensify even more due to demographic changes. Today, every fourth German employee is over 55 years old and will retire within the next ten years. In contrast, foreign workers in Germany are much younger – the proportion of those in older age is just over 12 percent, according to "Bertelsmann".
Over one million job vacancies in Germany
"The figures show: without significant immigration, many sectors will face serious difficulties", explains Tobias Ortmann, a labor market expert at the foundation. He points out that although jobs are being cut in many places, there are still over one million job vacancies in Germany. "If we want to maintain the prosperity of our society, the integration of immigrants must be improved", says the expert. According to him, it is "high time to objectify the immigration debate" and to give impetus to reforms.
According to the study, there is a great deal of untapped potential among immigrant women, who are significantly less likely to be employed in jobs subject to social security. It also makes it clear that foreign workers are often assigned to positions that are below their qualifications.
For example, in the group of German workers, around 12 percent work as assistants. Among foreign workers, however, this share amounts to almost 36 percent, with 12.5 percent of foreign workers with higher education working in a position requiring lower qualifications than they possess.
The share of social welfare recipients is decreasing in many groups
Bertelsmann also reveals other data: those on social welfare recipients among foreigners. Overall, the share of foreigners receiving state assistance is decreasing. Among those applying for asylum in Germany, it has fallen from 58.2% to 39.6% since 2020; among Ukrainians there has also been a decline - from 64.0% to 52.1% since 2023.
Among EU citizens, this share is significantly smaller - only 8.8 percent rely on social benefits. However, Bulgaria is an exception in this regard: as many as 25.6% of Bulgarian citizens in Germany receive social benefits. This is mainly due to the additional payment to reach the minimum standard of living - i.e. many of these people work, but earn too little and receive additional benefits from the state.
Good knowledge of the German language and recognition of foreign diplomas
Good knowledge of the German language increases the chances of finding a job - especially for women, the study says. This is why reliably funded support for language learning, combined with qualifications and childcare, including while working, must be provided.
The recognition of diplomas and professional experience is equally crucial. Many immigrants have qualifications but cannot use them in Germany.
According to the study, lengthy asylum procedures and uncertain residence prospects also delay starting work. Added to this are problems with coordination between the immigration and employment services. That is why a "one-stop shop" for foreign workers is needed, says labor market expert Roman Vink. Topics such as language, administrative procedures and childcare must function as a "continuous chain in the integration process," says the Bertelsmann Foundation.
Author: Emilian Lilov