The number of Germans in employment is steadily falling as older workers retire. This makes foreign workers, including both skilled workers and working asylum seekers, increasingly important to the country’s economy and social systems.
Germany’s labour market is increasingly reliant on foreigners.
Presenting labour market statistics for February, Andrea Nahles, Chairwoman of the Federal Employment Agency noted that the only increases in employment seen in Germany have been among nationals of countries outside the EU.
“The employment of German nationals is falling sharply,” Nahles said, adding, “the baby boomers are really retiring now.”
However, the number of employed foreigners in Germany is growing across all sectors, especially among Ukrainians and nationals from the most common countries of origin for asylum seekers.
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According to the Federal Ministry of Labour, 5.89 million foreigners were employed in Germany and subject to social security contributions in December. That’s 224,000 more than in the previous year. Of these, 74,000 were from Ukraine and a further 65,000 from the eight main asylum countries.
Germany’s Interior Ministry recently announced a plan to allow some asylum seekers to join the work force more quickly after arriving in the country. However, Nahles suggests the impact of this move will be slim as the change only really affects those who live in shared accommodation.
Currently, at least 100,000 asylum seekers still waiting for decisions on their asylum applications have already taken up employment subject to social security contributions.
Meanwhile labour migration — that is people moving to Germany specifically with the goal of taking up work — has also more than doubled since 2020, from 200,000 six years ago to 420,000 as of June 2025.
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Unemployment in Germany fell by 15,000 in February compared to the previous month, but remains at a high level, according to figures from the Federal Employment Agency in Nuremberg.
There are currently 3.07 million unemployed workers across the country, 81,000 more than a year before.
The German Trade Union Confederation has called on Chancellor Friedrich Merz (CDU) to make the fight against unemployment a top priority.
“Three million people are currently without work and without prospects…” said DGB board member Anja Piel, adding that there were far too few training places for young professionals.
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