From file: Germany urgently needs to encourage immigration into its labor market | Photo: J. Wolf/picture-alliance
From file: Germany urgently needs to encourage immigration into its labor market | Photo: J. Wolf/picture-alliance

People with foreign roots are still underrepresented in the German labor market, a study by Germany's Federal Institute for Population Research has found. In light of the severe shortage of skilled workers, they could therefore play a much bigger role in employment in the country.

Across Germany, more women and men with foreign roots are in gainful employment today than ten years ago. 

That's according to a new study by the Federal Institute for Population Research (BiB), which found that the labor market participation of people with a "migration background" in Germany increased by a good three percentage points between 2013 and 2022.

According to the definition for the BIB study, based on Germany's Federal Statistical Office, those with a "migration background" included people in Germany who were not born with German citizenship, as well as people who had at least one parent without German citizenship at the time of their birth.

"Demographic change and the ageing of society are already presenting the labor market with major challenges," Nikola Sander, head of the study, told news agency KNA. "In order to meet these challenges, it is important to make the best possible use of the diverse potential of people with a migration background."

According to the study, published on Wednesday (February 14), the percentage of people with a migration background in employment increased from 65% in 2013 to roughly 69% in 2022.

However, men and women without a migration background are still more likely to have a job: The figure was 8 percentage points higher for men and 17 percentage points for women in 2022.

Read more: Changes to Germany's skilled immigration rules take effect

Untapped potential

According to the Federal Institute for Population Research (BiB), Germany's roughly 24 million people with a migration background -- more than one in four of Germany's overall population of nearly 85 million -- are on average relatively young.

Therefore, their potential for labor market participation is especially pronounced, according to the BiB study. This applies to women with foreign roots in particular.

The BiB study also shows that the number of people with foreign roots with a high school diploma continues to rise. At the same time, however, the share of school dropouts has doubled between 2013 and 2022.

In terms of gender, there are clear differences: in 2022, 88% of men and only 52% of women with a migrant background were in full-time employment. For people without a migration background, the figures are 90% and 52% respectively.

In order to exploit the potential of people with a migrant background in times of demographic change, the BiB believes it is important to actively promote integration into society and the labor market, language acquisition and access to early childhood, school and vocational education.

"There is still potential for a sustainable supply of skilled workers, particularly among women with a migration background -- both in terms of the volume of work and the employment rate," said BiB Director Katharina Spieß.

The 46-page publication, entitled "Rediscovering the population with a migration background", was produced in cooperation with the Federal Ministry of the Interior and the Federal Ministry for Family Affairs on the basis of data from the microcensus.

Read more: Over one quarter of people in Germany have a migration background

Job agency Adecco wants to find jobs for 85,000 refugees

The Swiss recruitment agency Adecco meanwhile wants to provide refugees with more support in their job search, according to news agency Reuters.

85,000 of them are to be helped to find work worldwide by the end of 2027, the Zurich-based company reportedly announced on Wednesday (February 14).

17,000 people are also to be given the opportunity to undergo training or further education. Adecco is thus increasing its commitment, which includes setting up a special website to support refugees in their job search: In June 2023, the company pledged to find jobs for 50,000 people and provide technical or language training for 10,000.

Adecco has already taken part in a program in Germany that aims to find employment for 10,000 refugees by the end of 2025.

According to the latest data from the UN refugee agency UNHCR, the number of refugees in European countries has risen sharply over the past roughly two years, mainly because people have fled the war in Ukraine and are seeking safety in neighboring countries.

According to UNHCR, Europe's forcibly displaced and stateless population is projected to increase by 2% this year to almost 25 million people.

Read more: Labor migration to the EU – what can Europe do better?

with KNA, Reuters