The departure of baby boomers from the workforce is creating a significant gap in Germany's labor market. Alongside this, there has been a notable decline in labor productivity growth. These factors are contributing to increasing labor shortages and particularly weak economic growth in the country.
An analysis explores what economic development might be expected in Germany up to 2050 if current trends around labor force participation, working hours, and labor productivity persist. A 'business-as-usual' scenario was calculated to project the growth of gross domestic product based on prevailing trends.
The study also outlines key strategies that Germany could implement to mitigate the shortage of skilled labor. The impact of demographic change is profound, highlighting an urgent need for action.