Bloomberg reported that unemployment shortage in Germany and growth is at Risk, considering that Europe’s largest economy may witness limited growth of 1% annually for decades.
According to the model provided by a German government research institute, according to Bloomberg, the country’s workforce of 47 million people would stop growing.
That moment would be a sign of a super economic cycle that transformed a war-ravaged country into an industrial powerhouse and one of the richest countries in the world.
Whatever comes next, according to the site, an era in which successive generations of Germans saw their living standards raised by the steady expansion of the labor force is coming to an end.
Bloomberg report added that without a major transformation, the German workforce will shrink dramatically in the coming years, undermining economic growth, boosting inflation pressures and posing particularly difficult challenges for manufacturing companies that form the backbone of Europe’s largest economy.
Over the next decade, according to the same site, the labor supply will contract by 3 million people, or 7%, unless retired Germans replaced by a large influx of immigrants.