FT: Germany to face lack of 7 million workers by 2035

German Labour Minister Hubertus Heil has forecasted a lack of 7 million workers in the country by 2035.

The minister stated that Germany will create one of “Europe’s most modern immigration regimes” to address a worsening skills shortage that risks becoming a “real brake on economic growth”, Financial Times reports.

Heil stress that many industries were “desperate” for staff, noting that the situation would only get worse as baby boomers retire.

“Germany will lack 7mn workers by 2035 if we don’t do something. And that could end up being a real brake on our economic growth,” he stated.

The latest European Commission survey informs that the shortage of workers is limiting output at 42 per cent of Germany’s services companies, 34 per cent of its industrial groups and 30 per cent of construction companies.

The reform legislation, expected to be passed by the German Parliament in the coming weeks, will make it much easier for foreign workers to take up a job in the country. However, some business groups argue that the decision is too bureaucratic.