The retirement of the baby boomer generation will leave a larger gap in the labor market than previously expected, according to a study by the German Economic Institute (IW). Instead of the previously assumed three million, more than four million workers will be missing by the end of the period. The forecast is thus around 1.3 million higher than just two years ago.
The employer-friendly institute cites the federal government’s migration policy as one reason for the worsened situation. The last cohort of baby boomers will reach retirement age in 2036. The population is shrinking faster than assumed: in 2024, growth was still expected until 2040, but last year the population declined for the first time in years.
The study gives the federal government concrete recommendations for action to reduce the gap. Pressure on social systems is increasing, the Cologne-based institute emphasizes. By 2045, only about 81.1 million people are expected to live in Germany – almost three percent fewer than today.
Source: Tagesschau
