Germany’s labour market is becoming increasingly dependent on foreign workers, as demographic changes and an ageing population continue to create pressure across key sectors of the economy.
According to a recent analysis by the Bertelsmann Foundation, Germany is facing growing labour shortages despite the rising number of foreign employees. In March 2026, the number of workers subject to social security contributions was slightly lower than a year earlier, while the number of foreign workers increased significantly.
Several sectors are already heavily reliant on migrant labour. Almost half of all employees in the cleaning sector are foreign nationals. The food production industry, hospitality, tourism and care services also depend strongly on workers from abroad.
Experts warn that this trend will become even more important in the coming years. Around one in four German employees is now over the age of 55 and is expected to retire within the next decade. Foreign workers, by contrast, are generally younger and are helping to fill gaps in the workforce.
Germany still has more than one million job vacancies, even though some companies are cutting positions in certain sectors. Labour market specialists argue that better integration of migrants is essential if the country wants to maintain economic stability and public services.
The study also highlights unused potential among migrant women, who are less likely to be employed in jobs covered by social security. Another problem is that many foreign workers are employed below their qualification level, even when they have higher education or professional experience.
Language skills remain one of the most important factors for successful employment. Experts say that German language training, childcare support and faster recognition of foreign diplomas could help more migrants enter suitable jobs.
The report also notes that the share of foreign nationals receiving social benefits has declined in several groups. However, some workers still need state support because their wages are too low to cover basic living costs.
Specialists say that Germany needs a more practical and coordinated approach to immigration, employment and integration. Faster administrative procedures, better cooperation between institutions and easier recognition of qualifications could help both foreign workers and the German economy.
